The National Petroleum Authority (NPA) has announced new price floor for oil marketing companies and other players selling petroleum products from May 15 to May 31, 2024.
The period covers the first pricing window for the month.
Based on the price update seen by JOYBUSINESS, the floor price for diesel has gone up to GH₵13.15, from the old price of GH₵13.07.
Petrol on the other hand has been reduced marginally. According to the new price floor, no oil marketing company should sell a litre of petrol below GH₵13.60. This represents a reduction from the old price of GH₵13.63.
The NPA also announced that a kilogram of Liquefied Petroleum Gas must not be sold less than, GH₵12.30. This represents an increase from the GH₵10.55 the quoted as price floor from May 1 to May 15, 2024.
The price update from the NPA reminded all the various players including the Oil Marketing Companies to strictly comply with the new pricing guidelines for the industry.
The price floor announcement covers the second pricing window for petroleum products which runs from April 16 to April 30 2024.
NPA on price floor despite opposition
The National Petroleum Authority introduced the price floor mechanism to check price undercutting in the industry. It stated that the practice if not checked could threaten the stability of the industry.
The programme has faced some criticism from some players in the industry, who have described the policy as anti-free market programme.
The NPA insists the roll out of the price floor policy was based on industry consultation and recommendation by players on what steps must be taken to deal with price undercutting.
Credit: Joy Business