The National Petroleum Authority says its requirement for Oil Marketing Companies to maintain uniform fuel prices across their retail outlets is designed to ensure fairness for consumers across the country.
Abass Ibrahim Tasunti, Director of Economic Regulation and Planning at the NPA, says the policy is rooted in existing regulations and supported by the Unified Petroleum Price Fund, which covers the cost of transporting petroleum products across Ghana.
Speaking on Joy News’ PM Express on Wednesday, he explained that the rule ensures consumers in distant parts of the country are not disadvantaged.
“And this is to ensure that the consumer in Wa, for example, pays the same price as the consumer in Accra, the consumer in Akokobi should pay the same price as a consumer in Tema, and so an oil marketing company does not differentiate prices between the same network.”
According to him, the principle of uniform pricing has been embedded in Ghana’s downstream petroleum regulations for years.
“In 2015, when we did regulated pricing, where we now allow the oil marketing companies to determine their price independently, when we started seeing competition in the industry, LI was amended, LI222, and remember this instrument from Parliament that LI, or section 1C, still mandates oil marketing companies to keep a uniform price across their retail outlets.”
He explained that although companies are free to set their own prices under the deregulated regime, the law still requires them to keep the same price across stations within their network.
“Inasmuch as oil marketing companies determine their own prices, and we have prices varying between companies, the company must maintain a uniform price.”
Mr Tasunti said the Unified Petroleum Price Fund plays a critical role in supporting this system.
“The reason is that in the pricing formula, as you explained earlier, we have the Unified Petroleum Price Fund, which ensures that the cost of distributing petroleum products from the depots to the retailer is borne by this fund.”
He added that Oil Marketing Companies themselves do not directly bear those transport costs.
“So, oil marketing companies, on their own, do not pay for that cost. So at the end of every month, they submit claims to us to pay for the cost of transportation.”
He noted that the regulator has continuously adjusted pricing guidelines to ensure the industry remains competitive while maintaining stability.
“Along the line, you know, we are trying to make sure that, as much as we deregulated, competition is promoted, but competition must be healthy. It shouldn’t be a competition that kills the industry.”
Mr Tasunti said earlier pricing rules also required companies to maintain a fixed price throughout each pricing window.
“And even let me add this, that one of the guidelines earlier was also that oil marketing companies will set a price for the window, and within the window, they keep the price until the window ends.”
He said that the rule limited competition because market conditions could change within the window.
“This, we realise, does not really allow competition, because within the cost of the window, several factors can allow an oil marketing company to revise its price.”
To address that, the regulator introduced new flexibility.
“And so we allowed oil marketing companies, since 2024, to revise their price on a daily basis, within the cost of the window.”
He explained that companies only need to inform the regulator before adjusting prices.
“So if an oil marketing company wants to reduce its price throughout the window, they can do so, but they have to inform the regulator that tomorrow, for example, I will review my price. You have to inform us today.”
He stressed that the revised guidelines still allow companies to compete while maintaining fairness for consumers nationwide.
“And so nothing stops all marketing companies from being competitive. We’ve adjusted this pricing guideline over the period to allow them to be competitive.”
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Source: www.myjoyonline.com