The National Petroleum Authority (NPA) has set a new price floor for the second pricing window, which runs from October 16 to October 31, 2024. The administration set GH₵12.73 for petrol and GH₵13.43 for diesel.
The development implies that no oil marketing organization should sell below the price quotes.
In its notification to Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas (LPG) marketers, the NPA asked all parties to adhere to the price floors listed above for the window.
It further said that the price floors omit the premiums imposed by International Oil Trading Companies (IOTCs), the operating margins of BIDECs, and the Marketers’ and Dealers’ Margins of OMCs/LPGMCs.
These will be independently determined by the companies as per the Price Deregulation Policy.
The NPA implemented the price floor method to prevent price undercutting in the industry. It added that if the behavior is not checked, it could jeopardize the industry’s stability.
The NPA has announced the suspension of the Price Floor Programme for Bulk Oil Distribution Companies.
This was due to several concerns aired by participants in the sector. However, the program for oil marketing businesses continues.
Some industry players have criticized the project, describing it as an anti-free market strategy.
