The Africa Sustainable Energy Centre (ASEC) has endorsed Ghana’s fuel price floor policy as a successful regulatory tool but wants the National Petroleum Authority (NPA) to introduce greater flexibility to encourage competition among oil marketing companies.

Speaking on theAsaase Breakfast Show on Wednesday (15 July), Executive Director Justice Ohene Akoto described the policy as one of Ghana’s strongest achievements in petroleum sector regulation.

“The price floor is something the NPA has really gotten right,” he said.

According to him, the policy has brought stability to Ghana’s downstream petroleum market by preventing erratic fuel pricing and maintaining order among oil marketing companies.

“If not for the price floor, we would have seen all kinds of things happening within the system.”

Akoto said Ghana’s approach is unique and deserves international recognition.

“This is something peculiar to Ghana and it is worth amplifying globally as one of the bright spots in our energy sector.”

Despite supporting the policy, Akoto argued that efficient companies should be allowed limited flexibility to sell below the benchmark price provided fuel quality standards are maintained.

He proposed introducing an allowable pricing band of between five and ten percent below the established price floor.

“If an OMC wants to sell lower with the same quality, we should allow it within an acceptable band.”

He urged the NPA to strengthen quality assurance and enforcement mechanisms to ensure cheaper fuel does not compromise standards.

“The NPA should invest strongly in quality control and standardisation.”

Akoto said such reforms would preserve consumer protection while encouraging healthy competition within the petroleum industry.