Apanga warns against rushing fuel price floor removal

The Deputy Chief Executive Officer of the Gaming Commission of Ghana, Lamtiig Apanga, has urged government to exercise caution in considering the removal of fuel price floors, warning that a hasty decision could disrupt fuel supply and negatively affect consumers in the long run.

Speaking on Channel One TV’s Breakfast Daily on Tuesday, Mr. Apanga said that although scrapping the price floor may appear attractive in the short term, it could expose the market to unhealthy competition that may ultimately work against consumers.

He explained that removing the minimum pricing mechanism without a thorough review could distort the market, particularly if oil marketing companies are forced into aggressive price undercutting that makes their operations unsustainable. Such a situation, he warned, could result in supply shortages.

Mr. Apanga noted that while consumers might initially benefit from lower pump prices, the long-term impact could be fuel scarcity, leading to higher prices and weakened energy security.

He therefore called for a more measured and deliberate approach, stressing the need to prioritise a stable and reliable fuel supply over short-term price reductions. According to him, the current pricing framework should be carefully reviewed rather than hastily dismantled.

“We do not want to get to the point where we run out of fuel. At least, let us have a stable supply of fuel. I think we should take a second look at it and not rush into removing it,” he said.

His remarks come at a time when the Chamber of Petroleum Consumers (COPEC) is mounting pressure on the National Petroleum Authority (NPA) to abolish the fuel price floor contained in the 2024 petroleum products pricing guidelines.