Ghana’s National Petroleum Authority (NPA) has increased the minimum prices for petrol, diesel, and liquefied petroleum gas (LPG) for the second pricing window of February 2026, effective February 16 to 28, in a move aimed at stabilizing the downstream petroleum sector.
Under the new directive, petrol cannot be sold below GH¢10.24 (US$0.73) per litre, up from GH¢9.99 (US$0.71) in the first February window. Diesel has been pegged at GH¢11.34 (US$0.81) per litre, rising from GH¢10.95 (US$0.78), while LPG is now set at GH¢9.43 (US$0.67) per kilogram. Oil and gas companies currently selling below these thresholds are required to adjust their pump prices to comply with the policy.
The NPA’s price floor policy, first introduced in April 2024, mandates all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to adhere to minimum pricing guidelines. The regulator said the measure is intended to prevent price distortions, enhance market transparency, and promote fair competition in the fuel industry.
“The policy aligns with the Petroleum Pricing Guidelines and is designed to create a predictable and balanced pricing structure for both consumers and operators,” the NPA said in a statement. The authority emphasized that the price floors exclude international oil trading premiums, operating margins of Bulk Import, Distribution and Export Companies (BIDECs), and marketers’ and dealers’ margins, which companies determine independently.
The Chamber of Oil Marketing Companies has called on all members to comply strictly with the approved floors. Officials said adherence is crucial to maintain market stability, protect consumers, and ensure fairness across the downstream petroleum sector.
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The latest adjustment has sparked debate within the industry. Market leader Star Oil recently withdrew from the Chamber of Oil Marketing Companies (COMAC), arguing that the price floor limits its flexibility to set competitive prices according to prevailing market conditions.
However, other COMAC members have supported the NPA’s intervention, describing the policy as necessary to prevent the downstream petroleum industry from “collapsing” under the pressure of unsustainable undercutting. Emergency board meetings reportedly approved the continuation of the price floor programme, citing widespread non-compliance by some operators in previous months.
Analysts note that Ghana’s fuel market is highly sensitive to fluctuations in international oil prices, currency movements, and local supply dynamics. In this context, the NPA’s price floor provides a baseline to protect operators’ margins while ensuring the availability of petroleum products.
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Since its introduction in 2024, the price floor system has been gradually adjusted to reflect changing global oil prices and domestic market conditions. It aims to balance consumer affordability with industry sustainability, creating predictability in a sector historically vulnerable to sharp price swings and undercutting by some marketers.
Background to Ghana’s downstream sector
Ghana’s downstream petroleum market is dominated by a combination of international and local operators. Fuel pricing is closely monitored by both the regulator and industry associations to prevent disruptions, ensure fair competition, and maintain supply security. The NPA has stated that ongoing compliance checks and reporting mechanisms will continue to enforce the price floor.
Consumers may see the impact of the new floors immediately at fuel stations, while operators are expected to adjust pump prices over the next few days. Authorities hope the measure will stabilize the market in the short term, protect margins, and maintain confidence among both investors and end-users.
The NPA’s decision comes at a time when the industry faces rising operational costs, fluctuating import prices, and competition among marketers. By setting minimum price thresholds, the regulator seeks to safeguard the integrity of Ghana’s fuel sector and reduce the risk of unsustainable pricing practices.
Ghana introduced a petroleum price floor policy in April 2024 to stabilize the downstream fuel market and prevent price distortions. The policy sets minimum prices for petrol, diesel, and liquefied petroleum gas (LPG) that all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) must comply with.
The initiative aims to enhance market transparency, fairness, and sustainability, providing predictable pricing in a sector historically prone to sharp fluctuations. According to the National Petroleum Authority (NPA), the price floor helps protect operators’ margins while ensuring consumers have access to fuel at reasonable and consistent levels.
Under the policy, petrol prices are typically adjusted in line with global oil prices, exchange rate movements, and supply costs. For example, the previous February 2026 pricing window set petrol at GH¢9.99 (US$0.71) per litre, diesel at GH¢10.95 (US$0.78) per litre, and LPG at GH¢9.43 (US$0.67) per kilogram.
The policy has faced resistance from some industry players. Market leader Star Oil argued that the price floor restricts their ability to compete, while other marketers supported the measure, citing non-compliance and “serious price undercutting” by competitors in prior months. The Chamber of Oil Marketing Companies (COMAC) has generally endorsed the price floor, viewing it as essential to prevent the downstream petroleum industry from destabilizing.
Ghana’s downstream petroleum sector is dominated by a mix of international and local operators, with pricing influenced by global crude oil movements, import costs, and foreign exchange fluctuations. The NPA monitors compliance through reporting mechanisms and periodic inspections, ensuring that fuel retailers adhere to minimum price levels while maintaining supply and market stability.
The price floor system is part of broader efforts by the government to strengthen energy sector regulation, protect consumers, and support fair competition, particularly in a market where fuel is a critical input for transportation, industry, and daily life.
