ACEP director raises concerns over NPA's new petroleum pricing guidelines

Ben Boakye, the Executive Director of the African Center for Energy Policy (ACEP), has expressed reservations regarding the National Petroleum Authority's (NPA) recent pricing directives for petroleum products.

The NPA's announcement, outlined in a letter to industry stakeholders, introduces a pricing "floor" effective April 1, 2024, preventing Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Firms (LPGMF) from setting

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Mr. Boakye criticized the move, highlighting the contradiction it presents in what should be a deregulated market. He emphasized the need for the NPA to transition towards full deregulation, allowing market forces to dictate prices.

NPA's decision stems from industry concerns about price undercutting, prompting a review of the Petroleum Products Pricing Guidelines initiated in June 2015.

However, Mr. Boakye expressed skepticism about the NPA's focus, suggesting that its intervention in pricing deviates from its core mandate and raises questions about its objectives.

He challenged the necessity of imposing price floors, arguing that such actions undermine the essence of partial deregulation initiated in June 2005, which aimed to let market dynamics determine fuel prices.

ACEP is calling for transparency and clarity from the NPA regarding its recent directives and urges a reconsideration of its approach to pricing regulation in the petroleum sector.