TheChamber of Oil Marketing Companies (COMAC) has defended theNational Petroleum Authority’s (NPA) fuel price floor policy, arguing that it protects both consumers and the downstream petroleum industry from market distortions and unsustainable competition.

Speaking on the Asaase Breakfast Show on Wednesday (15 July), Chief Executive Officer of COMAC, Riverson Oppong, said the price floor was introduced following consultations between industry players and the regulator to ensure stability in Ghana’s deregulated petroleum market.

“The price floor is a benchmark that is there to protect both the consumer and the industry,” Oppong said.

He rejected criticisms that the policy prevents competition by stopping some oil marketing companies (OMCs) from selling fuel below competitors.

According to him, selling below cost is economically unsustainable and could encourage poor-quality fuel or tax evasion.

“If your mother sells kenkey and the cost of preparing it is four cedis, she cannot sell it for two cedis,” he said. “Anybody selling at the price floor today knows it is not economically sustainable.”

Oppong explained that fuel prices in Ghana are reviewed every two weeks under a deregulated pricing mechanism that is primarily influenced by international petroleum prices and the cedi-dollar exchange rate, not government directives.

“The government has no say in whatever prices we have. We import fuel into this country and therefore international prices determine pump prices,” he said.

He noted that crude oil prices declined sharply after the Iran-Israel ceasefire but rebounded after renewed geopolitical uncertainty following remarks by US President Donald Trump, leading to the latest upward adjustment.

Oppong also criticised some bulk distribution companies (BDCs) for allegedly withholding petroleum products in anticipation of higher prices.

“Some BDCs were hoarding products waiting for the new prices before selling. That is wrong and I speak against it vehemently,” he said.

He urged companies to avoid increasing prices within an existing pricing window, saying such practices undermine confidence in the downstream sector.

According to him, Ghana’s petroleum pricing regime remains one of the best on the continent despite existing challenges.

“Ghana has one of the best fuel pricing mechanisms in Africa,” he said.

However, Oppong acknowledged that the current price floor could be reviewed during the next stakeholder consultations expected next year.

He said industry players would consider proposals including introducing more flexibility while maintaining market discipline.