Saturday, 20 April

NPA amends pricing guidelines effective April 1

Business
Pumps

Starting in April 2024, the National Petroleum Authority (NPA) will implement revised pricing guidelines for petroleum products in Ghana. 

Under these guidelines, a minimum pricing threshold, termed the "floor," will be established for petroleum products, preventing industry players from setting prices below this benchmark.

The revised guidelines, communicated through a memo dated March 27, 2024, will come into effect on April 1, 2024. 

The NPA will set and communicate price floors for deregulated products during two pricing windows each month: the 1st to the 15th and the 16th to the end of the month.

In a letter signed by the Deputy Chief Executive of the NPA, Curtis Perry Okudzato, industry players were advised to adhere strictly to these guidelines.

 Petroleum Service Providers (PSPs) will be required to comply with the price floors set by the NPA for each pricing window and refrain from selling products below these prices.

The amendment to the pricing guidelines follows a review of the Pricing De-Regulation Policy initiated by the NPA in response to industry concerns. 

The revision aims to address price undercutting issues in the petroleum industry by ensuring a fair pricing framework.

Key changes include the requirement for Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies to submit actual ex-pump prices to the NPA instead of indicative prices. 

These prices must be communicated to the NPA by 12 noon on the working day before they take effect.

Additionally, the NPA will conduct regular price monitoring exercises at retail outlets to verify ex-pump prices. 

OMCs and LPG Marketing Companies are mandated to prominently display ex-pump prices for all petroleum products at retail outlets, ensuring transparency and consistency.

Under the amended guidelines, PSPs must compute their prices using the Prescribed Petroleum Pricing Formula provided by the NPA.

 Sanctions, ranging from fines of 5,000 to 20,000 Ghana Cedis, will be imposed on companies found to violate the guidelines.

The NPA emphasizes its commitment to enforcing these guidelines to maintain fairness and stability in the petroleum sector.

 The revisions reflect input from industry stakeholders and aim to enhance pricing transparency and compliance among market players

Source: Classfmonline.com/Cecil Mensah