The National Petroleum Authority (NPA) has set a new price floor for petroleum products, enforcing a minimum selling price for fuel in the second pricing window of February 2025.

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Under the new directive, petrol cannot be sold below GH₵12.56 per litre, while diesel has a minimum price of GH₵13.45 per litre. Liquefied Petroleum Gas (LPG) has also been pegged at a minimum of GH₵14.26 per kilogram.

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This measure, effective from February 16 to 28, 2025, mandates Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to adhere strictly to the price thresholds, ensuring market stability in the downstream petroleum sector.

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The NPA asserts that the initiative aligns with the Petroleum Pricing Guidelines, which are intended to enhance transparency and sustainability in fuel pricing.

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While the price floor sets a lower limit, it does not include additional premiums from International Oil Trading Companies (IOTCs) or operational margins for Bulk Import, Distribution, and Export Companies (BIDECs). Similarly, marketing and dealer margins remain independently determined under Ghana’s deregulated pricing framework.

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Industry analysts suggest that the introduction of a price floor will discourage undercutting tactics among fuel distributors, fostering a fairer competitive landscape. By enforcing a minimum benchmark, the NPA aims to create a predictable and balanced pricing structure that benefits both consumers and market players.

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Despite maintaining price deregulation, the directive ensures that companies remain profitable while safeguarding consumer interests. Companies can still set prices above the mandated floor, allowing for competitive flexibility within the sector.

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