Ghana’s National Petroleum Authority (NPA) has confirmed it will maintain a regulatory floor on retail fuel prices, despite public calls to remove the mechanism to lower consumer costs.
Speaking to local broadcaster JoyNews, Abass Tasunti, NPA’s director of economic regulation and planning, said the authority “has no plans to remove this policy” given current market conditions.
The decision comes amid debate between oil marketing companies and consumer advocacy groups, who argue that the minimum price floor prevents fuel stations from passing on the full benefit of recent declines in international refined product prices.
The NPA, however, defended the policy, emphasizing that its primary purpose is to maintain stability in Ghana’s downstream petroleum sector, which remains heavily reliant on bank financing. Distributors use credit lines to import fuel, and the authority warned that removing the floor could result in uneven pricing across operators and potential supply disruptions.
Minimum Price Mechanism
More Read
Introduced in April 2024, the minimum retail price policy applies to gasoline, diesel, and liquefied petroleum gas (LPG). The NPA resets the floor every two weeks based on import costs, taxes, port charges, and regulatory levies.
Recent review periods have seen the floor set at around 12–13 Ghanaian cedis per litre for gasoline, 13–14 cedis for diesel, and above 14 cedis for LPG, according to NPA pricing schedules. Marketers are required to sell fuel above these levels even when procurement costs fall, limiting their ability to offer lower prices to consumers.
The authority introduced the floor amid financial strain in the downstream sector. Challenges included mounting arrears, increased dependence on bank credit, and wide price disparities among distributors. Authorities argue that the measure has helped stabilize the sector, preventing the type of market volatility that can disrupt fuel supply nationwide.
More Read
Ghanaian officials reported that the government spent approximately $1.47 billion in 2025 to clear long-standing arrears in the energy sector, a step seen as crucial to maintaining confidence among suppliers and international creditors. Tasunti said the NPA is cautious about any measures that could destabilize operations, stating: “We will avoid steps that could trigger disruptions or uneven supply across the country.”
The price floor has also been justified as a tool for macroeconomic stability, particularly in a sector where distributors depend on short-term bank financing to cover import costs. By maintaining a predictable floor price, the authority aims to ensure that distributors can service debts and continue imports without interruption, supporting overall energy security.
While critics highlight the immediate cost burden for consumers, the NPA’s stance reflects broader priorities in Ghana’s energy policy: safeguarding the financial viability of the downstream sector, maintaining consistent supply, and ensuring transparency in pricing. Officials argue that removing the floor could lead to price undercutting among distributors, eroding margins and creating potential liquidity challenges for smaller operators.
The regulatory floor remains a key feature of Ghana’s energy landscape, balancing consumer interests with sectoral stability. As the government seeks to modernize and finance the downstream petroleum market, the policy is likely to remain in place, with adjustments tied to import costs and market dynamics rather than short-term price fluctuations.
Tasunti concluded by stressing the authority’s caution in handling sector reforms: “Our priority is to preserve stability in the downstream sector. While lower prices are desirable for consumers, they cannot come at the expense of operational sustainability and uninterrupted fuel supply.”
