The Chamber of Petroleum Consumers (COPEC) has called on the National Petroleum Authority (NPA) to abolish the minimum price floors set under the 2024 petroleum pricing guidelines, describing the policy as outdated and counterproductive.

COPEC argues that the price floors, which prevent petroleum service providers (PSPs) from selling fuel below a regulator-determined minimum, limit competition and deny consumers potential savings, particularly in a deregulated market.

Speaking to Citi FM, COPEC Executive Secretary Duncan Amoah said the policy does little to benefit consumers and suggested that removing it could allow oil marketing companies (OMCs) to offer lower prices when market conditions permit.

“Insisting on a price floor only inconveniences consumers. The Authority should consider abandoning this system altogether, as it does not serve the public’s interest,” he stated.

This conversation was started by the Chief Executive Officer of Star Oil, Philip Tieku, who has argued that scrapping the policy would allow prices to fall further, given current market conditions.

He maintains that consumers are being denied the opportunity to enjoy lower fuel prices at the pumps because of the policy.

Currently, the NPA sets and communicates price floors for deregulated petroleum products at the beginning of each pricing window, and PSPs are required to comply.

Violations can attract fines of up to GHS¢5,000.