NPA abolishes fuel discounts, mandates uniform pump prices across country

The National Petroleum Authority (NPA) has abolished the practice of offering discounted fuel prices across Ghana’s downstream petroleum sector.

Under the new directive, all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) are required to stop applying selective price reductions at designated retail outlets.

The move is part of a review of the Petroleum Products Pricing Guidelines, which will take effect on March 16, 2026. The revised framework mandates that operators implement uniform ex-pump prices at all retail stations, in line with the approved pricing formula, effectively ending location-based discounting strategies.

In a statement issued on February 27, 2026, and shared with industry players, the NPA explained that the revision aims to strengthen existing guidelines, ensure compliance with the Pricing Formula Regulations (LI 2186, as amended by LI 2222), and enhance monitoring, enforcement, and overall compliance to sustain the downstream petroleum sector.

The NPA has invited all OMCs and LPGMCs to a meeting on Wednesday, March 11, 2026, at its headquarters to discuss the revised guidelines and provide clarity before implementation. The regulator has also warned that sanctions will be imposed on companies that fail to comply with the new rules.

Impact on Industry Players

The revised guidelines are expected to affect major operators, including market leader Star Oil, which had previously used selective discounts at some retail stations as part of its pricing strategy. State-owned GOIL PLC had also adopted similar discount models, while other OMCs introduced price reductions amid intensified competition in the sector.

An industry source close to Star Oil told Citi Business News that before the introduction of the discounting guidelines, all its outlets operated uniform pricing nationwide and remained profitable. The company reportedly performed well under the discounted pricing regime as well and holds no specific preference for either system.

However, the source noted that compliance enforcement remains a concern. Under the previous non-discounted regime, some smaller OMCs routinely violated pricing guidelines by charging different rates at different locations. There are expectations that such practices could re-emerge despite the NPA’s warning of sanctions.

Star Oil maintains that it operates one of the lowest cost-per-litre structures in the industry and remains confident in its ability to deliver competitively priced, quality fuel under the new uniform pricing framework.

Under the 2024 Petroleum Products Pricing Guidelines, retail outlets were allowed to offer discounts of up to two percent of the approved ex-pump price to consumers. This provision has now been removed.