The National Petroleum Authority (NPA) has rejected calls to scrap the Fuel Price Floor Programme, insisting that the policy remains necessary due to ongoing unfair pricing practices in the downstream petroleum sector.
According to the Authority, the market conditions that led to the introduction of the price floor have not fundamentally changed, warning that pricing distortions continue to pose risks to industry stability.
Director of Economic Regulation and Planning at the NPA, Abass Tasunti, stated this in an interview on Business Live on JoyNews, stressing that the regulator is cautious about making decisions that could destabilise the sector.
He said the NPA is fully aware of the sensitivities within the industry and does not intend to take actions that could plunge it into crisis. Mr Tasunti also highlighted the close link between the petroleum and financial sectors, noting that policy decisions in fuel pricing can have broader economic implications.
“Looking at the current developments on the market, the National Petroleum Authority has no plans to remove this policy,” he said.
The NPA’s stance comes amid renewed pressure from some industry stakeholders calling for the removal of the fuel price floor. Chief Executive Officer of Star Oil, Philip Tieku, has argued that scrapping the policy would allow fuel prices to fall further under current market conditions, enabling consumers to benefit from lower pump prices.
Similarly, Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has called for the policy’s removal, arguing that it stifles competition and amounts to undue market interference.
The Petroleum Price Floor Programme was introduced by the NPA in April 2024 and requires Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to adhere strictly to a minimum fuel price. The policy is intended to prevent price distortions and promote stability in the downstream petroleum sector.
According to the NPA, the initiative is aligned with the Petroleum Pricing Guidelines and is designed to enhance transparency, sustainability and fair competition in the fuel market, while ensuring long-term benefits for both consumers and industry players.
