NPA to implement pricing floor for petroleum products from April 1

Beginning April 2024, the National Petroleum Authority (NPA) will introduce pricing floors for petroleum products in Ghana, prohibiting industry players, including Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing (LPGMC) Firms, from setting prices below the specified benchmark.

The implementation of the Amended Pricing Guidelines by the NPA, slated to commence on April 1, 2024, aims to establish a

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According to the Amendment, the NPA will communicate price floors for deregulated products during each pricing window, which spans from the 1st to the 15th and the 16th to the 30th of each month.

In a directive issued to industry stakeholders, signed by Deputy Chief Executive Curtis Perry Okudzato on behalf of the NPA CEO, all Petroleum Service Providers are urged to adhere strictly to these guidelines.

This measure comes in response to industry concerns regarding rampant price undercutting by certain oil marketing companies in the country.

The NPA has committed to regularly providing Petroleum Service Providers with comprehensive pricing formulas, detailing specific taxes, levies, and margins applicable for each pricing window, in Excel format.

Moreover, the NPA emphasizes that Petroleum Service Providers must abide by the prescribed price floors for deregulated petroleum products during each window, refraining from selling products below these designated prices.