The National Petroleum Authority (NPA) has announced new minimum price levels for petroleum products for the first pricing window of February 2026, covering February 1 to February 15. Under the directive, no Oil Marketing Company (OMC) or LPG Marketing Company (LPGMC) is permitted to sell petroleum products below the approved price floor during the period. According to a price update from Joy Business, the diesel price floor has been increased to GH¢10.95 per litre, up from GH¢10.47. The price floor for petrol has also been increased to GH¢9.99 per litre, up from GH¢9.80. Liquefied Petroleum Gas (LPG) is priced at GH¢9.05 per kilogram. The development means oil marketing companies currently selling below these thresholds will be required to adjust pump prices accordingly to comply with the directive. Background In April 2024, the National Petroleum Authority implemented a price floor policy for petroleum products. The directive requires Oil Marketing Companies and LPG Marketing Companies to comply strictly with the minimum prices set for fuel sales. According to the NPA, the policy was introduced to prevent price distortions and promote market stability within the downstream petroleum sector. The Authority explained that the initiative aligns with the Petroleum Pricing Guidelines and is intended to enhance transparency, sustainability and fairness in the fuel market. The NPA has also argued that the policy would create a more predictable and balanced pricing structure, ultimately benefiting consumers while ensuring fair business practices. The Authority further noted that the decision to implement the policy followed recommendations from various industry players, citing non-compliance with market pricing rules by some operators, including what it described as “serious price undercutting.” Industry Concerns on Price Floor The latest adjustment in the price floor comes amid intense industry debate, which led market leader Star Oil to exit the Chamber of Oil Marketing Companies (COMAC). Following an emergency board meeting, a majority of COMAC members voted to allow the National Petroleum Authority to proceed with implementing the price floor programme. COMAC has argued that the policy is necessary to prevent the downstream petroleum industry from “collapsing.” However, Star Oil has maintained that the price floor limits its ability to set competitive prices based on prevailing market conditions.
