NPA Hikes Fuel Price Floor From September 16

The National Petroleum Authority has increased the price floor for petroleum products effective September 16, with petrol to sell at 16 cedis and diesel at 16.77 cedis across retail outlets in Ghana.

The adjustment was announced in Accra through a pricing directive that establishes the minimum threshold below which Oil Marketing Companies cannot sell. The Authority said the measure aims to stabilise the downstream market, prevent undercutting and ensure full recovery of levies and taxes.

Under the revised framework, petrol has been pegged at 16 cedis per litre while diesel moves to 16.77 cedis per litre, reflecting changes in international benchmark pricing, foreign exchange dynamics and freight considerations. Marketers are expected to comply strictly or face regulatory sanctions.

Officials of the Authority indicated that the floor price mechanism remains crucial to protecting refinery margins, maintaining product quality and sustaining consumer confidence. They emphasised that deregulation does not imply abandonment of oversight in price formation.

The downstream sector has witnessed periodic tension between regulators and marketers over pricing flexibility, particularly during periods of cedi depreciation and volatile crude markets. The floor system was introduced to curb predatory pricing that threatened industry sustainability and government revenue streams.

Consumers and transport unions have expressed concern over the upward review, citing its potential impact on transport fares, inflation and household expenditure. Economic analysts advise that transparent communication and targeted mitigation will be essential to cushion vulnerable groups while preserving fiscal integrity in the petroleum value chain.

Source: #Howedey.com
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Author: Korkor Anumu