The Chamber of Petroleum Consumers (COPEC) is urgng the National Petroleum Authority (NPA) to scrap minimum fuel price floors, arguing that the policy stifles competition and prevents consumers from benefiting from lower pump prices in a deregulated market.
COPEC says the NPA price floors introduced under the 2024 petroleum pricing guidelines, which bar petroleum service providers from selling fuel below a regulator-set minimum, must be abolished. The chamber described the framework as outdated and counterproductive, particularly at a time when market conditions could support deeper price reductions.
“Insisting on a price floor only inconveniences consumers. The Authority should consider abandoning this system altogether, as it does not serve the public’s interest,” COPEC Executive Secretary Duncan Amoah said in an interview with Citi FM.
The renewed criticism follows comments by Star Oil Chief Executive Officer Philip Tieku, who argued that removing the policy would allow oil marketing companies to cut prices further and pass savings to consumers. He said the current framework denies motorists the opportunity to benefit from lower fuel prices at the pumps, despite favorable market conditions.
Philip’s suggestion has also been challenged by GOIL Managing Director Edward Abambire Bawa, who said, “Some industry players are claiming that they can reduce prices further, yet in reality they cannot even compete at the approved floor price of GHS 9.80 for PMS in this pricing window. These are the NPA-approved floor prices. If, as an OMC, you are calling for the opportunity to reduce prices further, it is reasonable to ask why you have not first reduced your PMS price to at least the floor of GHS 9.80, instead of selling at GHS 9.97. Calling for deeper price reductions while pricing above the regulated floor undermines the credibility of that claim.”
Ghana’s petroleum pricing regime requires oil marketing companies to adjust prices within each biweekly pricing window. Under current rules, however, the NPA sets and communicates minimum prices for deregulated petroleum products at the start of every window, and petroleum service providers are required to comply. Breaches of the pricing guidelines can attract fines of up to GHS¢5,000, according to the regulator.
