The Chamber of Petroleum Consumers (COPEC) has intensified its call for the National Petroleum Authority (NPA) to abolish price floors mandated in the 2024 petroleum products pricing guidelines. According to COPEC, the policy, which prohibits Petroleum Service Providers (PSPs) from selling below a regulator-set minimum, is hampering competition and working against the interests of Ghanaian consumers.
Speaking to Citi Business News, Duncan Amoah, the Executive Secretary of COPEC, described the price floor as “outdated” and ill-suited for a deregulated downstream petroleum sector. He argued that removing the floor would enable oil marketing companies (OMCs) to pass on lower prices to consumers whenever market dynamics allow.
Amoah explained, “If I have cash and can negotiate a better deal, I should be able to benefit from a lower price. The current system, where the NPA sets both price floors and ceilings, restricts the free market and ultimately inconveniences consumers.”
His comments come as the second pricing window in January brings some relief at fuel pumps, yet Amoah insists more savings could be realized if price floors did not bind OMCs. He urged the NPA to consider creative solutions and to let market forces determine prices, rather than imposing regulatory limits.
Under current NPA guidelines, price floors are set and communicated at the start of every pricing window, with PSPs facing fines of up to GHS5,000 if they sell below the established minimum. Since its introduction, industry players have criticized the policy for stifling healthy competition and denying consumers the full benefits of a deregulated market.
COPEC’s renewed advocacy places the spotlight once again on pricing policies in Ghana’s petroleum sector and the ongoing debate over the most effective way to protect consumer interests.
Source: Apexnewsgh.com
