The Institute for Energy Security (IES) has called on the National Petroleum Authority (NPA) to strictly enforce its fuel price floor and price uniformity policies, warning that weak regulation is threatening the sustainability of Ghana’s downstream petroleum market.
In a statement issued in Accra, IES said recent observations of ex-pump fuel prices show growing non-compliance with NPA regulations, including instances where petrol is allegedly being sold marginally below the approved price floor.
The statement follows a January 2026 industry article by the Chamber of Oil Marketing Companies (COMAC), titled “Price Floor in Perspective: A Call for Structural Market Clean-up.” IES said its own independent market monitoring supports COMAC’s concerns about structural and pricing challenges in the sector.
According to IES, Ghana’s downstream petroleum market remains heavily over-licensed, with more than 229 oil marketing companies (OMCs) and liquefied petroleum gas marketing companies (LPGMCs).
It noted that at least 53 licensed entities are reportedly dormant or non-operational, a situation the institute says weakens regulatory discipline and distorts competition.
“This oversaturation, combined with weak enforcement, has intensified price wars beyond economically sustainable levels,” the statement said, adding that the trend undermines market integrity and financial viability.
IES referenced NPA-approved floor prices for the Jan. 16–31, 2026 pricing window—GH¢9.80 per litre for petrol and GH¢10.47 per litre for diesel—and raised concern that some discounted prices were clustering dangerously close to, or in some cases falling below, the approved minimum.
The institute described any pricing below the floor as a serious regulatory breach, arguing that it undermines the authority of the NPA, creates unfair competitive advantages, and raises the risk of tax and levy evasion.
Beyond the price floor, IES also criticised selective discounting practices, where fuel price reductions are applied at specific outlets rather than uniformly across an OMC’s retail network. It said this practice violates the NPA’s Price Uniformity Policy and weakens the country’s price stabilisation framework.
IES warned that selective discounting undermines the objectives of the Unified Petroleum Pricing Fund (UPPF), which is designed to equalise fuel prices nationwide by offsetting distribution costs between urban centres and remote areas.
According to the institute, consumers in competitive urban areas benefit disproportionately from discounts, while those in less competitive or rural locations—who are meant to benefit most from the UPPF—end up paying higher prices.
In its call to action, IES urged the NPA to immediately investigate and sanction OMCs found to be pricing below the approved floor, enforce price uniformity across retail networks, and apply firm sanctions including fines, suspensions, or licence reviews.
It also called for a structural clean-up of the licensing regime, including the withdrawal of dormant and non-operational licences, and stronger monitoring to ensure pump prices match published prices.
IES cautioned that without decisive regulatory action, the downstream petroleum market risks a “destructive race to the bottom” characterised by non-compliance, fiscal leakages, and long-term harm to consumers and compliant industry players.
The institute further warned that the continued operation of the UPPF cannot be justified if price uniformity is not enforced at the retail level, stating that non-uniform pricing erodes public confidence and imposes inequitable costs on consumers.
“Protecting consumers requires protecting the integrity of the market,” the statement said, stressing the need for consistent enforcement, transparency, and discipline in Ghana’s downstream petroleum sector.
Source :www.kumasimail.com
