The National Petroleum Authority (NPA) has announced revised price floors for petroleum products, effective from May 15 to May 31, 2024.
These adjustments cover the second pricing window for the month and reflect nuanced changes in the pricing landscape for diesel, petrol, and liquefied petroleum gas (LPG).
In the latest update, the price floor for diesel has seen a modest increase, rising from GH₵13.07 to GH₵13.15 per litre. Conversely, the minimum price for petrol has been slightly reduced, moving from GH₵13.63 to GH₵13.60 per litre.
The most significant change has been noted in the price of LPG, with the floor price per kilogram escalating from GH₵10.55 to GH₵12.30.
The NPA’s directive calls for strict compliance with these new pricing guidelines by all stakeholders, including Oil Marketing Companies (OMCs).
The price floor mechanism, introduced by the NPA, aims to curb the practice of price undercutting which poses a risk to market stability.
Despite the rationale presented, the policy has sparked debate among industry participants, some of whom argue that it undermines free-market principles.
Critics contend that the policy stifles competition and could lead to higher consumer prices.
However, the NPA has defended its stance, citing extensive industry consultations and a consensus on the necessity of such measures to maintain a balanced and stable market environment.
The current adjustments mark the second pricing window for petroleum products for the period from May 16 to May 31, 2024, indicating an ongoing effort to fine-tune the market dynamics.
As the industry adapts to these changes, the NPA’s commitment to preventing disruptive pricing strategies remains clear.