By The National Petroleum Authority (NPA) has announced new price floors for oil marketing companies and other entities selling petroleum products, effective from May 15 to May 31, 2024.
This period marks the first pricing window for the month.
According to the price update seen by JOYBUSINESS, the floor price for diesel has increased to GH₵13.15, up from the previous price of GH₵13.07.
Petrol, on the other hand, has seen a slight reduction. The new price floor stipulates that no oil marketing company should sell a liter of petrol below GH₵13.60, down from the previous price of GH₵13.63.
Additionally, the NPA announced that a kilogram of Liquefied Petroleum Gas (LPG) must not be sold for less than GH₵12.30, an increase from the previous floor price of GH₵10.55 set from May 1 to May 15, 2024.
The price update from the NPA reminded all players, including Oil Marketing Companies, to strictly comply with the new pricing guidelines for the industry.
The price floor announcement covers the second pricing window for petroleum products, running from May 15 to May 31, 2024.
NPA on Price Floor Despite Opposition
The National Petroleum Authority introduced the price floor mechanism to curb price undercutting in the industry. It stated that unchecked price undercutting could threaten the industry’s stability.
The program has faced criticism from some industry players, who describe the policy as anti-free market.
The NPA insists the rollout of the price floor policy was based on industry consultation and recommendations from stakeholders on how to address price undercutting.
