The National Petroleum Authority (NPA) has announced a new price floor for the second pricing window, effective from October 16th to 31st, 2024.
The authority has set the minimum price at GH₵12.73 for petrol and GH₵13.43 for diesel.
This means that no oil marketing company is permitted to sell below these prices.
In a notice to Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas (LPG) marketers, the NPA urged all industry players to adhere to the established price floors during this period.
The NPA clarified that the new price floors do not include the premiums charged by International Oil Trading Companies (IOTCs) or the operating margins of BIDECs, nor the Marketers’ and Dealers’ Margins for OMCs and LPGMCs.
These will be independently determined by the companies, as outlined under the Price Deregulation Policy.
The price floor mechanism was introduced by the NPA to prevent price undercutting in the industry, a practice that could destabilize the sector if left unchecked.
Recently, the NPA suspended the Price Floor program for Bulk Oil Distribution Companies (BDCs) due to concerns raised by stakeholders in that sector. However, it will continue implementing the policy for oil marketing companies.
Despite some criticism from industry players who view the policy as anti-free market, the NPA maintains that the price floor was introduced after consultation with industry stakeholders and is necessary to address price undercutting.