The National Petroleum Authority (NPA) has initiated the enforcement of a “price floor” for petroleum products across the country.
This new pricing guideline, effective from April 16 to April 30, 2024, mandates that Oil Marketing Companies (OMCs) and Petroleum Service Providers (PSPs) must not sell a litre of petrol below ₵13.02 and diesel below ¢13.07.
Additionally, the price for a kilogram of Liquefied Petroleum Gas (LPG) should not fall below ¢10.52.
The circular issued on April 12, 2024, emphasizes strict compliance with these new pricing guidelines, which are part of the NPA’s efforts to curb price undercutting and maintain industry stability.
Despite some opposition, the NPA has clarified that the implementation of the price floor was done in consultation with industry stakeholders. This initiative is in line with the amended pricing guidelines introduced by the NPA on April 1, 2024.
According to the amendment, the NPA “shall set and communicate price floors for the deregulated products for each pricing window.”
In a letter signed by its Deputy Chief Executive, Curtis Perry Okudzeto, the NPA has advised all petroleum service providers to adhere strictly to the guidelines.
The NPA emphasized that it would regularly provide petroleum service providers with the complete pricing formula, detailing the specific taxes, levies, and margins applicable for each pricing window in excel format.
“The Petroleum Service Providers shall comply with the price floors set for the deregulated petroleum products for each window by not selling products below those prices”, the NPA said.
