The prices of petrol and diesel have drop at various pumps
Over the past week, the term price floor has dominated conversations following the drop in fuel prices at various pumps by Oil Marketing Companies (OMCs).
For those in the petroleum sector, this may sound routine. But for the average consumer, it is technical and confusing.
GhanaWeb Business breaks down what the price floor means and why the National Petroleum Authority (NPA) enforces it.
What is a Price Floor?
In Ghana’s fuel market, a price floor is the minimum ex-pump price set by the NPA. This regulation prevents OMCs from selling fuel below a certain threshold, and all companies are required to comply with this directive.
The policy is designed to protect smaller firms and maintain stability in the petroleum sector.
While it shields against predatory pricing, critics argue that it reduces competition and keeps prices higher than they might otherwise be.
Why Ghana uses a Price Floor regime
Market stability: Promotes fair competition in a deregulated sector.
Protection for smaller OMCs: Prevents larger firms from undercutting rivals with unsustainably low prices.
Supply security: Ensures the industry remains viable so fuel is available nationwide.
Long-term consumer protection: Prevents monopolies that could later exploit consumers.
Fuel could sell for GH¢9.50 without NPA price floor – Star Oil CEO hints.
Criticisms of the Price Floor policy
Critics argue that the price floor limits competition and restricts consumer relief.
Limits competition: Companies like Star Oil say they could sell petrol at GH¢9.50 during off-peak hours, but the floor prevents this.
Restricts consumer relief: Critics say falling global oil prices and a stronger cedi do not fully translate into cheaper local fuel because of the price floor.
Despite the floor, fuel prices have begun to ease across the country.
On January 16, 2026, several OMCs reduced pump prices following industry projections of a more than 3% drop in petroleum product costs during the current pricing window.
GOIL, the second-largest player, cut petrol prices from GH¢10.99 to GH¢9.99 per litre.
Star Oil, the market leader, followed with reductions, with petrol now selling at GH¢9.97 per litre and diesel at GH¢10.97 per litre.
According to the CEO of Star Oil, Philip Teiku, the price reduction forms part of the company’s nationwide discount strategy aimed at easing the burden on consumers while remaining competitive in Ghana’s dynamic fuel market.
SA/MA
