NPA rejects calls to remove price floor, cites Star Oil pricing

The National Petroleum Authority (NPA) has rejected calls to scrap the fuel price floor, insisting that the policy is essential for maintaining stability in Ghana’s downstream petroleum sector.

The regulator argues that price floors are necessary to prevent undercutting among oil marketing companies (OMCs) and to safeguard the long-term sustainability of the industry, amid renewed concerns from some sector players.

Abass Tasunti, Director of Economic Regulation and Planning at the NPA, challenged claims by Star Oil that it could have reduced fuel prices further if not for the price floor. He noted that the company has consistently priced above the regulator-set minimum during recent pricing windows.

“Even for Star Oil, which is making this claim, their pricing has always been above the floor. For example, in the first pricing window of December 2025, the petrol price floor was GH¢10.98 per litre, while Star Oil sold at GH¢11.97. In the second window, the floor dropped to GH¢10.67, yet Star Oil’s discounted price at some stations was GH¢10.97—still above the floor,” he explained.

The price floor policy, outlined in the 2024 petroleum products pricing guidelines, requires Petroleum Service Providers (PSPs) to comply and prohibits selling below the minimum set for each pricing window. Violators face fines of up to GHS5,000.

When first introduced, some industry players criticized the policy, arguing that it limited competition and restricted potential price reductions for consumers. However, the NPA maintains that the floor is critical for stabilizing the sector and preventing destructive pricing practices.