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The National Petroleum Authority (NPA) has set a new price floor for petroleum products for the second pricing window of February, requiring Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to comply with the minimum pricing standards.
Effective from February 16 to 28, 2025, the directive prohibits companies from selling fuel below the designated threshold, with non-compliance potentially resulting in sanctions from the regulator.
Under the new pricing structure, the minimum price for petrol is GHȼ12.56 per litre, diesel is GHȼ13.45 per litre, and LPG is GHS14.26 per kilogram.
This measure aligns with the Petroleum Pricing Guidelines aimed at maintaining stability in the downstream sector.
However, the newly established price floors do not account for premiums set by International Oil Trading Companies (IOTCs), operating margins of Bulk Import, Distribution, and Export Companies (BIDECs), or the marketing and dealer margins of OMCs and LPGMCs. These cost components will continue to be determined independently under the country’s price deregulation policy.
By enforcing the price floor, the NPA seeks to prevent price undercutting among industry players, ensuring a stable and competitive market.