On March 4, 2026, the National Petroleum Authority (NPA) announced a directive banning all Oil Marketing Companies (OMCs) from offering discounted fuel prices at their retail outlets.
Effective March 16, 2026, OMCs must ensure uniform ex-pump prices across all their stations, eliminating location-based or outlet-specific price reductions. The directive is part of a review of the Petroleum Products Pricing Guidelines. The NPA states it is intended to ensure compliance with the Pricing Formula Regulations and enhance stability in the downstream sector .
The NPA CEO, Edudzi Tamakloe, has publicly stated that the requirement for uniform pricing is already in the legislation. He cited that the law requires ex-pump prices to be the same at respective retail outlets.
“The Uniform Price Directive is designed to benefit all Ghanaians and consumers. The law clearly states that all ex-pump prices set by oil marketing companies must be the same at their respective retail outlets. It’s in the legislation,” he said.
The directive is being implemented through a review of the Petroleum Products Pricing Guidelines, which the NPA has the authority to issue. The NPA specifically cites the need to ensure compliance with the Pricing Formula Regulations (LI 2186 as amended by LI 2222).
The NPA’s core mandate comes from the NPA Act, 2005 (Act 691). However, this Act is widely considered outdated for the current deregulated market. The government is currently working on a new NPA Bill to strengthen the regulator’s powers precisely because Act 691 has been outpaced by industry developments .
This directive, coupled with the existing price floor policy, moves the NPA from a regulator of a “deregulated” market to a direct price-setter. This has been previously challenged as potentially anti-competitive and outside the NPA’s intended functions .
Despite this public face, Star Oil has been the most vocal opponent of the NPA’s recent price controls. In January 2026, Star Oil’s CEO, Philip Tieku, publicly criticised the NPA’s price floor policy, stating it prevents his company from offering lower prices (like GH¢9.50) to consumers . This frustration led Star Oil to exit the Chamber of Oil Marketing Companies (COMAC) over the price floor issue .
While the NPA claims it has the legal footing under LI 2186 to enforce uniform pricing, this is a wide and contested expansion of its regulatory power. The fact that the government is actively seeking to replace Act 691 to strengthen the NPA suggests that the current Act may not provide a solid foundation for such a directive, leaving it open to legal challenge.
Star Oil’s statement about being “confident” should be read as a competitive flex, not an endorsement of the policy. Their history shows they believe they can win customers with lower prices, and this directive directly targets that strength.
What Other African Countries Are Doing
To understand whether Ghana’s approach is an outlier, it is useful to examine how other African nations manage fuel pricing. The picture across the continent reveals that Ghana’s combination of a price floor and a uniform pricing directive is unique. Most countries with low fuel prices achieve this through direct subsidies or state control, not through regulations targeting OMC competition.
North Africa: Subsidy-Driven Markets
Libya currently has the cheapest fuel in Africa, with petrol priced at approximately $0.024 per litre . This ultra-low price is sustained by deep government subsidies and the country’s abundant crude oil reserves. Despite political instability, the state maintains heavily subsidized fuel to shield consumers from global market fluctuations .
Algeria offers petrol at $0.362 per litre supported by government subsidies and a strong oil and gas sector . Similarly, Egypt sells petrol at $0.448 per litre, though it has been gradually reforming its fuel subsidy system under an IMF-backed programme since 2016 . Egypt now implements periodic price adjustments to better reflect global market conditions .
Angola, an oil-producing nation, sells petrol at $0.327 per litre, benefiting from domestic production and regulated distribution channels .
These North African markets are fundamentally different from Ghana’s. Their low prices are achieved through state-backed pricing structures and fuel subsidies , not through regulations that ban discounts or impose price floors on private OMCs. In these countries, the state absorbs costs; in Ghana, the NPA is attempting to manage how private companies compete.
Nigeria: The Tariff Approach
Nigeria presents a different model. After removing long-standing fuel subsidies, the market now operates with more deregulated pricing. Petrol costs approximately $0.580 per litre .
However, to protect its domestic refining sector notably the Dangote Refinery, the Nigerian government introduced a 15% import duty on petroleum products . This duty, initially deferred to the first quarter of 2026, is designed to encourage local refining and stabilize market prices .
This is a trade and tariff measure, not a direct price control. It aims to make imported fuel less competitive relative to locally refined products, thereby supporting domestic industry. Unlike Ghana’s approach, Nigeria is not telling marketers what price to charge; it is using fiscal policy to influence market dynamics.
Southern and East Africa: Lessons in Deregulation
The experiences of other African countries provide cautionary tales about what can happen when fuel markets are deregulated without adequate safeguards.
Kenya deregulated fuel prices in 1994. While competition seemed healthy at first, by 2008 just five companies controlled almost 90% of the market . Smaller sellers were either shut down or bought by bigger players. When fuel supply problems occurred in 2009 and 2010, the government had to reintroduce price controls to stabilise the market .
Zambia experienced a similar trajectory. After deregulating fuel prices in 2008, market concentration increased, and rural areas suffered as small sellers exited the market. Regulations were subsequently reinstated to protect supply and rural consumers .
South Africa maintains a highly concentrated market, but strong regulation prevents large companies from abusing their power, which has helped keep smaller sellers operational .
The Institute for Energy Security (IES) has explicitly used these international examples to justify Ghana’s existing Price Floor policy, arguing that “unregulated price wars in fuel markets often lead to monopolisation, supply disruptions, and ultimately higher consumer prices”
