The Institute for Energy Security (IES) has pushed back strongly against calls to scrap the National Petroleum Authority’s (NPA) fuel price floor, arguing that the policy remains vital to protecting competition in Ghana’s downstream petroleum market, even as fuel prices continue to fall.
This comes against the backdrop of declining global oil prices and relative stability in the cedi, which have contributed to successive reductions in fuel prices at the pumps in recent weeks.
Some Oil Marketing Companies (OMCs), including StarOil, have argued that the price floor prevents them from passing on deeper price cuts to consumers.
In a statement dated Monday, January 19, IES said the price floor was never intended to fix prices but to prevent predatory pricing that could drive smaller OMCs out of business.
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The energy policy think tank questioned claims that petrol could be sold as low as GH¢9.50 per litre during off-peak hours, insisting that fuel retail costs remain constant regardless of the time of day.
IES warned that unregulated price competition, especially by dominant players, could lead to market concentration, supply disruptions and higher prices in the long term. It also cited international experience to support its argument.
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The Institute has therefore called on the NPA to investigate StarOil’s pricing claims, assess compliance with existing regulations, and reaffirm the rationale behind the price floor regime to ensure market stability and sustainable consumer protection.
Below is a copy of the statement
Source: Starrfm.com.gh
