The Institute for Energy Security (IES) has rejected claims that the National Petroleum Authority’s (NPA) fuel price floor is preventing oil marketing companies from reducing pump prices, insisting the policy remains critical to fair competition and market stability.
The response follows public comments by StarOil Ghana, which suggested petrol could be sold at GH¢9.50 per litre during off-peak night hours if not for the NPA’s approved price floor of GH¢9.80 per litre in the current pricing window
In a statement dated January 19, 2026, IES said the downstream petroleum sector is capital-intensive, high-risk and exposed to global price volatility and exchange rate movements, adding that the price floor was introduced as a competition-stabilising mechanism, not a price-fixing tool
IES explained that the policy is intended to prevent predatory pricing, protect small and emerging oil marketing companies (OMCs), and ensure supply continuity, particularly during periods of tight margins
The energy think tank warned that unregulated price competition could lead to market concentration, supply disruptions, and ultimately higher prices for consumers, citing international experiences in deregulated fuel markets.
IES also questioned the feasibility of time-based fuel discounts, noting that operational costs such as storage, financing, distribution, and inventory risks do not change during night hours.
The institute said claims of selling below the approved price floor raise concerns about whether such prices are below economic cost, whether losses are being cross-subsidised, and whether smaller OMCs would survive sustained price undercutting
IES further noted that GOIL Ghana has publicly challenged claims by some industry players, arguing that certain companies calling for lower prices are unable to compete even at the approved floor price in the current pricing window.
As a result, the institute has called on the National Petroleum Authority to investigate the pricing claims, assess compliance with existing regulations, and examine whether any form of predatory pricing or market distortion is being contemplated or practised.
IES maintained that fuel pricing debates should be grounded in market economics, competition policy and long-term consumer welfare, rather than short-term pricing pressures.