The Africa Centre for Energy Policy (ACEP) is arguing that the survival of businesses in Ghana’s downstream petroleum sector should be driven by business competence, efficiency, and innovation, not regulatory protectionism.
ACEP says the regulator is gradually drifting away from progressive regulation and instead propping up inefficiencies at the expense of consumers and genuinely competitive businesses.
The energy policy think tank made this case in its reaction to the current debate on the NPA’s fuel price floor policy cited by The High Street Journal.
Call for Smarter & Progressive Regulation
ACEP is urging the NPA to rethink its regulatory approach and focus on what it calls progressive functions. Rather than blanket policies like price floors, the think tank wants the regulator to adopt targeted, data-driven oversight that identifies and punishes unfair practices without killing competition.
In ACEP’s view, effective regulation should focus on exposing anti-competitive behaviour, sanctioning offenders, and improving product quality, while still allowing room for creativity, innovation, and smart pricing strategies that benefit consumers.
“ACEP urges the NPA to prioritise progressive regulatory functions. This entails a more targeted approach that enforces progressive rules and sanctions companies engaging in unfair practices by employing data-driven approaches focused on identifying and eliminating anti-competitive behaviour without undermining business creativity and cutting-edge strategies that benefit the consumer. This will foster a fairer market environment for consumers and businesses in the long run,” ACEP noted.
Protect Consumers, Not Inefficiency
A central argument of ACEP’s critique is consumer welfare. The group insists that sustaining a large number of oil marketing companies cannot be done at the expense of the Ghanaian consumer.
The think tank insists that it is time for NPA to realise that sustaining 200 OMCs and 30 BIDECs cannot be at the expense of the consumer. For ACEP, the excessive appetite for regulatory fees to sustain their growing staff is impeding the organisation’s creativity and efficiency.
It reveals that currently, 15 percent of registered OMCs supply 90 percent of the market. Over 160 OMCs supply only 10 percent of the market but pay the required regulatory fees.
The think tank argues that regulation should protect consumers first, not guarantee survival for companies that cannot compete effectively in a deregulated market.
“Businesses must survive in the downstream sector on the merits of their business acumen and not on the basis of the NPA’s wishes,” it added.
The Bottomline
For ACEP, the lingering question is why should consumers bear the cost of regulations designed to sustain firms with minimal market presence.
In ACEP’s view, regulation should not be shaped by institutional survival or revenue needs, but by clear market outcomes: fair pricing, quality products, and healthy competition.
The think tank insists that the future of Ghana’s fuel market depends not on tighter price controls, but on smarter regulation that rewards merit, disciplines abuse, and puts the consumer first.
