NPA increases price floor for petroleum products

The National Petroleum Authority (NPA) has announced a new minimum pricing for some petroleum products effective from May 1 to May 15, 2024.

According to a circular issued to Oil Marketing Companies (OMCs) and Bulk Oil Distribution Companies, the price for petrol is now GH¢13.63 per litre, a slight increase from the previous GH¢13.02.

Diesel remains at GH¢13.07 per litre, while LPG sees a minor rise to GH¢10.55 per kilogram from GH¢10.52.

This adjustment is part of the NPA's strategy to prevent undercutting in the market and ensure the stability of the petroleum industry.

The move has been met with mixed reactions, with some stakeholders calling for a price ceiling to accompany the floor to maintain a free market environment.

Concerns have also been raised regarding the exchange rates used by the NPA, with suggestions to adopt Bloomberg rates instead of the Bank of Ghana rates for more accuracy.

In a letter signed by its Deputy Chief Executive, Curtis Perry Okudzeto, to industry players, the NPA reiterated the importance of adherence to these guidelines, stating that the Petroleum Service Providers shall “comply with the price floors set for the deregulated petroleum products for each window by not selling products below those prices.”

It stressed that they are crucial for maintaining fair competition among service providers.

The NPA also reassured stakeholders that it will occasionally furnish Petroleum Service Providers with a complete pricing formula, including taxes, levies, and margins for each pricing window.

ID/NOQ

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