The Chamber of Bulk Oil Distributors (CBOD) has called for urgent investigations into oil marketing companies (OMCs) selling fuel below the National Petroleum Authority’s (NPA) approved floor price, warning that the practice could point to illegal activities within Ghana’s downstream petroleum sector.
The call comes amid intensifying public debate over the fuel price floor policy, following claims by some industry players that fuel could be sold cheaper if the regulatory mechanism were removed.
Speaking on the issue, CBOD’s Chief Executive, Dr Patrick Ofori, urged regulators to move swiftly to protect the integrity of the market and ensure strict compliance with pricing rules.
Dr Ofori said the price floor mechanism was not introduced arbitrarily but as part of broader efforts to curb illicit practices and promote transparency across the petroleum value chain. According to him, any company found undercutting the approved minimum price must be subjected to regulatory scrutiny.
“While the floor price may be one of the mechanisms to avert some of these illicit activities and non-compliance within the sector, we push for the regulator to crack down on all those who have been found culpable.”
Dr Patrick Ofori, CBOD’s Chief Executive
He stressed that selling fuel below the regulated floor price raises serious questions about sourcing, pricing structures and compliance with established industry rules.
Questions Over Fuel Sourcing and Pricing
CBOD expressed concern that claims of selling fuel below the floor price could mask deeper problems in the sector, including possible tax evasion, smuggling or other unapproved supply arrangements.
Dr Ofori argued that such practices, if left unchecked, could undermine law-abiding operators and distort competition.
“Anybody who can boast of selling below the floor pricing needs to somehow be investigated in terms of how he’s getting it.”
Dr Patrick Ofori, CBOD’s Chief Executive
According to CBOD, the downstream petroleum sector is highly sensitive, and any deviation from approved pricing frameworks must be treated seriously to avoid eroding trust in the market.
The renewed calls for enforcement follow recent remarks by the Chief Executive of Star Oil, who suggested that his company could offer lower fuel prices if it were not constrained by the price floor policy.
Those comments have sparked widespread debate on social media and within the industry, with opinions divided over whether the price floor protects consumers or stifles competition.
CBOD, however, maintains that the focus should not be on headline-grabbing price promises but on ensuring that all operators comply with existing regulations.
Why the Price Floor Was Introduced
Ghana’s National Petroleum Authority introduced the fuel price floor mechanism in 2024 to stabilise pricing in the downstream petroleum sector.
The policy was designed to prevent predatory pricing, protect smaller players from being forced out of the market, and promote fair competition.
Under the mechanism, OMCs are not permitted to sell fuel below a minimum price set by the regulator for each pricing window. The NPA has consistently argued that the conditions that necessitated the introduction of the policy still exist.
CBOD aligns with this position, insisting that the price floor remains an important tool in safeguarding the sector from practices that could lead to long-term instability.
Dr Ofori warned that failure to enforce the price floor could encourage a race to the bottom, where companies cut prices irresponsibly to gain market share, potentially compromising quality and supply security.
He said strict enforcement would help protect transparent operators who play by the rules and ensure that competition is based on efficiency and service, not regulatory loopholes.
According to CBOD, allowing some players to flout the rules could weaken confidence in the petroleum market and discourage investment across the supply chain.
Call for Strong Regulatory Action
The Chamber emphasised that the responsibility now lies with the NPA and other relevant state institutions to investigate claims of below-floor pricing and apply sanctions where necessary. CBOD believes decisive action would send a strong signal that non-compliance will not be tolerated.
Industry observers note that the controversy highlights deeper tensions within Ghana’s downstream petroleum sector, as companies jostle for market share in a deregulated environment while navigating regulatory controls designed to maintain stability.
The ongoing debate over the fuel price floor has exposed sharp divisions among industry players, with some advocating for greater pricing flexibility and others warning against the risks of unregulated competition. CBOD’s intervention adds weight to calls for discipline and adherence to established rules.
As fuel prices continue to attract public attention, the challenge for regulators will be to balance consumer expectations for lower prices with the need to maintain transparency, fairness and long-term sustainability in the sector.
For CBOD, the message is clear: any company selling fuel below the approved floor price must be investigated, and the integrity of Ghana’s petroleum market must be protected at all costs.
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