The Case for Maintaining Ghana's Petroleum Price Floor

In Ghana, the downstream petroleum sector was fully deregulated in July 2015, although the National Petroleum Authority (NPA) retained a price floor to ensure market stability and prevent predatory pricing. Recently, the CEO of Star Oil has called for the removal of this price floor, arguing that it could enhance competition. However, this proposal has raised concerns among industry experts and stakeholders who warn that eliminating the price floor could lead to market instability and negatively impact consumers. The rise of Star Oil as a market leader is cited as evidence of the price floor's effectiveness in fostering a competitive environment. Advocates for maintaining the price floor argue that it is crucial for protecting consumers and ensuring fairness in the market. The ongoing debate highlights the delicate balance between deregulation and consumer protection in Ghana's petroleum market.