HomeHow To SpendFuel Price Update: NPA Establishes ¢13.02 as Petrol Price Floor and ¢13.07...

Fuel Price Update: NPA Establishes ¢13.02 as Petrol Price Floor and ¢13.07 for Diesel

Fuel Price Update: NPA Establishes ¢13.02 as Petrol Price Floor and ¢13.07 for Diesel

The National Petroleum Authority (NPA) has started enforcing the “price floor” for petroleum products in the country.

The initiative, which is part of the NPA’s new pricing guidelines starts from April 16, to April 30, 2024 for the next window.

A circular issued on April 12, 2024 to the various players in the oil marketing and distribution industry seen by Joy Business stated that a litre of petrol should not be sold below ₵13.02 by Oil Marketing Companies (OMCs) and Petroleum Service Providers (PSPs).

Diesel on the other hand will have a price floor of ¢13.07.

The directive also added that a kilogram of Liquefied Petroleum Gas (LPG) must not be sold below ¢10.52.

The notice reminded the various players including the OMCs 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.

Per the implementation dates of the price floor, the NPA is expected to set the price for petroleum products.

Why the price floor?

According to the NPA, the implementation of the price floor is aimed at stopping price undercutting, which threatens the stability of the industry.

Despite agitations, the NPA has explained that the implementation is being done in consultation with stakeholders in the industry.

The regulator said the price floor for petroleum products is also part of the amended pricing guidelines rolled out by the NPA on April 1, 2024.

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Source: Joy News

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