ACEP Calls for Data-Driven Regulation to Tackle Fuel Market Inefficiencies
By: Maame Efua Kwaduah
The Africa Centre for Energy Policy (ACEP) has urged the National Petroleum Authority (NPA) to adopt progressive, data-driven regulation to enforce standards, sanction violators and promote fair competition in Ghana’s downstream petroleum sector.
In a statement, ACEP reiterated its opposition to the NPA’s price floor directive, first introduced in April 2024. The centre described the policy as a response to regulatory failure rather than a lasting solution to ongoing challenges in the sector.
ACEP argued that the price floor policy encourages inefficiency, discourages competition, and increases fuel costs for consumers. It disproportionately benefits weaker Oil Marketing Companies (OMCs) and Bulk Importers and Distributors of Energy Commodities (BIDECs) that struggle to compete in the market.
The centre highlighted structural inefficiencies in the sector, noting that 15% of OMCs supply nearly 90% of the market, while over 160 smaller OMCs share just 10%.
According to ACEP, the price floor does little to tackle persistent issues such as illicit and substandard petroleum products, tax revenue losses, excessive levies on consumers, or anti-competitive practices, including price undercutting.
ACEP also criticised the NPA for failing to apply targeted enforcement measures despite acknowledging unethical practices in the sector. The authority’s broad protectionist policies, the centre warned, sustain inefficiency and expose consumers to higher costs.
Citing ongoing price wars among OMCs, ACEP stressed that without regulation grounded in data, accountability, and fair competition, the downstream petroleum sector risks continued instability, rising fuel prices and weakened consumer trust.
The centre urged the NPA to move beyond protectionist measures, emphasising that rigorous enforcement of standards, sanctions for violators and promotion of competition would improve market efficiency while protecting consumers.
ACEP’s call aligns with growing concerns about the need for transparency and effectiveness in regulating Ghana’s petroleum market to ensure stability, fair pricing and equitable participation among operators.
