IES urges strict enforcement of fuel price floor policies

The Institute for Energy Security (IES) has called on the National Petroleum Authority (NPA) to strictly enforce the fuel price floor and price uniformity policies to protect Ghana’s downstream petroleum market from growing instability and regulatory abuse.

In a statement issued in Accra on January 25, 2026, IES said recent market observations and an industry article by the Chamber of Oil Marketing Companies (COMAC) reveal deepening structural and pricing challenges within the sector, which could undermine long-term sustainability and consumer protection if left unaddressed.

According to IES, Ghana’s downstream petroleum market remains heavily over-licensed, with more than 229 Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs), many of which are dormant, non-operational, or persistently non-compliant. The institute noted that at least 53 non-operational entities continue to retain active licences, weakening regulatory discipline and distorting fair competition.

IES also raised concerns over ex-pump pricing behaviour, citing market data as of January 20, 2026, which showed some OMCs offering prices dangerously close to, and in some cases below, the NPA-administered price floor. It stressed that any pricing below the approved floor, however marginal, constitutes a serious regulatory breach that undermines the authority of the NPA and creates unfair competitive advantages.

The institute further observed that fuel discounts are being applied selectively across locations rather than uniformly within OMC retail networks. IES said this practice violates the price uniformity policy and weakens the country’s fuel price stabilisation framework, particularly disadvantaging consumers in less competitive and rural areas.

IES warned that selective discounting also distorts the purpose of the Unified Petroleum Pricing Fund (UPPF), which is intended to ensure equal fuel prices nationwide by offsetting distribution cost differences. According to the institute, consumers in urban centres benefit disproportionately from lower prices, while those in remote areas effectively pay more despite contributing equally to the fund.

As part of its recommendations, IES called on the NPA to investigate and sanction OMCs found pricing below the floor, enforce price uniformity across retail networks, withdraw dormant licences, and strengthen monitoring to ensure alignment between published and actual pump prices. The institute said sanctions should include fines, licence suspension, or reviews where necessary.

IES cautioned that without firm enforcement and structural reforms, the downstream petroleum market risks descending into a destructive price war marked by regulatory non-compliance, fiscal leakages, and long-term harm to both consumers and compliant industry players.

The institute added that the continued operation of the UPPF should be reconsidered if price uniformity cannot be enforced at the retail level, warning that its persistence under non-uniform pricing conditions erodes public confidence in petroleum pricing policy.