Starting from April 2024, the National Petroleum Authority (NPA) in Ghana will establish a minimum price, known as the "floor," for petroleum products.

This new regulation will prevent all industry players, including Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing (LPGMC) Firms, from pricing their products below this specified benchmark.

The NPA's decision is part of its Amended Pricing Guidelines, which are set to be implemented from April 1, 2024.

According to the Amendment to the Pricing Guidelines, the National Petroleum Authority “shall set and communicate price floors for the deregulated products for each pricing window, which is 1st to 15 of each month and 16th to 30 of each month.

In a letter signed by the Deputy Chief Executive of the National Petroleum Authority, Curtis Perry Okudzato, the NPA has instructed all Petroleum Service Providers to adhere strictly to the new pricing guidelines. This includes maintaining a minimum price, or "floor," for petroleum products, aimed at preventing undercutting by industry players.

The NPA has committed to providing Petroleum Service Providers with the full pricing formula, detailing taxes, levies, and margins applicable for each pricing window in Excel format. Providers are required to comply with these guidelines and sell products above the specified price floors.

The amendment to the Petroleum Products Pricing Guidelines follows a review of the Pricing De-Regulation Policy, which began in June 2015. The review was initiated in response to industry concerns about price undercutting and aims to better serve the industry.

Effective April 1, 2024, Oil Marketing Companies are now required to submit actual prices for display at their service stations to the NPA, replacing the previous system of submitting indicative prices.

It added that “Petroleum Service Providers, PSPs shall no longer submit indicative ex-refinery and ex-pump prices to the National Petroleum Authority”

According to the National Petroleum Authority, “Oil Marketing Companies and LPG Marketing Companies shall notify the NPA of their actual ex-pump prices via mail to pricing@npa.gov.gh.”

“The NPA must be notified of the revised ex-pump prices by 12 noon of the working day before the effective date of the new ex-pump price.”

To ensure that all the players comply with these new guidelines, especially when it comes to the pricing of petroleum products, that National Petroleum Authority has revealed that “The NPA will also conduct regular price monitoring exercises at retail outlets to confirm the ex-pump prices of Oil Marketing Companies and the LPG Marketing Companies”

Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies are mandated to visibly display the ex-pump prices for all petroleum products sold at retail outlets on their price billboards.

“The prices displayed must always be the same as the prices on the dispensing pumps at the retail outlet” the NPA noted in the amended guidelines.

The Amended Petroleum Products Pricing Guidelines for 2024 stipulate that there will be two pricing windows in a month: from the 1st to the 15th, and from the 16th to the end of the month. During these windows, Petroleum Service Providers will review their prices in accordance with the Price Build Up of Petroleum Products.

Under the new guidelines, Oil Marketing Companies and Liquefied Petroleum Gas Marketing Companies can now review their prices at service stations daily. However, they must notify the NPA a day before implementing any changes at the pumps.

Previously, the advertised price at an Oil Marketing Company's service station had to be the same for all outlets nationwide. With the new guidelines, a dealer is permitted to offer a discount of up to 2 percent on the price submitted by the Oil Marketing Company.

Failure to comply with these new guidelines could result in fines ranging from 5,000 to 20,000 Ghana Cedis for Oil Marketing Companies. The National Petroleum Authority has assured that it will not hesitate to sanction any Oil Marketing Company, Bulk Oil Distribution firm, or Liquefied Petroleum Gas Marketing Company that fails to comply. These guidelines were developed based on recommendations from various industry stakeholders.