The National Petroleum Authority (NPA) has declared a new price floor for the upcoming pricing window from October 16 to 31, 2024. The authority has established a price of GH₵12.73 for petrol and GH₵13.43 for diesel.

This means that no oil marketing company is permitted to sell below these specified prices.

In its communication to Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas (LPG) marketers, the NPA urged all stakeholders to adhere to these price floors for the designated period.

It clarified that these price floors do not include the premiums set by International Oil Trading Companies (IOTCs) or the operating margins of Bulk Oil Import and Distribution Companies (BIDECs), as well as the margins for Marketers and Dealers of OMCs and LPGMCs. These will be determined independently by the companies in accordance with the Price Deregulation Policy.

The NPA implemented the price floor system to prevent price undercutting within the industry, warning that unchecked practices could jeopardize the sector's stability.

Recently, the NPA announced the suspension of the Price Floor program for Bulk Oil Distribution Companies due to concerns raised by participants in that sector. However, it will proceed with the program for oil marketing companies.

The initiative has faced criticism from some industry players, who have labeled the policy as anti-free market. Nonetheless, the NPA maintains that the introduction of the price floor policy was based on consultations with industry stakeholders and recommendations regarding necessary actions to combat price undercutting.