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COMAC Emergency Assembly: Navigating the Fuel Price Floor Debate on January 21

Introduction

The downstream petroleum sector in Ghana is bracing for a pivotal moment as the Chamber of Oil Marketing Companies (COMAC) announces an emergency general assembly scheduled for Wednesday, January 21, 2026. This meeting comes at a critical juncture regarding the Fuel Price Floor Programme, a regulatory mechanism that has sparked intense debate among industry stakeholders, consumer advocacy groups, and regulators.

With the National Petroleum Authority (NPA) maintaining its stance on the necessity of the policy and oil marketing companies divided on its impact, the upcoming assembly aims to forge a unified industry position. This article provides a comprehensive analysis of the Fuel Price Floor Programme, the arguments for and against it, and the potential implications for gas quality, pricing, and market stability.

Key Points

Background

To understand the current controversy, it is necessary to examine the origins of the Fuel Price Floor Programme. The policy was not introduced arbitrarily but emerged from consultations between sales strategy players and regulators, including the National Petroleum Authority (NPA).

The Rise of Predatory Pricing

The primary catalyst for the price floor was the emergence of harmful price undercutting within the market. This practice involves Oil Marketing Companies (OMCs) selling fuel at prices significantly lower than the cost of importation or production. While this may appear beneficial to consumers in the short term, it poses long-term risks.

Compromising Quality and Safety

When companies engage in predatory pricing, the profit margins are often so thin that they cannot sustain operations without cutting corners. This frequently leads to compromises in fuel quality. Substandard fuel can damage vehicle engines, increase emissions, and pose safety hazards. The price floor was designed to set a minimum benchmark, preventing prices from dropping to levels that would necessitate the distribution of inferior products.

Analysis

The upcoming emergency assembly highlights a classic tension between regulatory oversight and market freedom. The debate is not merely about the price at the pump but touches on broader economic principles and market health.

The NPA’s Defense of the Price Floor

The National Petroleum Authority (NPA) has firmly pushed back against calls to scrap the programme. Abass Tasunti, the Director of Economic Regulation and Planning at the NPA, emphasizes that the growth conditions that necessitated the policy’s creation remain relevant. The NPA argues that pricing distortions continue to threaten the stability of the downstream sector.

The regulator’s stance is cautious; they fear that removing the safety net of the price floor could plunge the innovator into a crisis of unsustainable pricing wars, ultimately harming the entire supply chain.

COMAC’s Divided House

Dr. Riverson Oppong, the Chief Executive of COMAC, describes the situation as a “tug of war.” The Chamber is currently split, with some members advocating for the removal of the floor to allow for competitive pricing, while others see it as a necessary protection against market volatility.

Dr. Oppong clarifies a common misconception: the price floor is not designed around entrepreneurship margins for oil marketing firms. Instead, it serves as a minimum benchmark to ensure that operations remain financially viable without resorting to quality compromises. Furthermore, the policy plays a role in safeguarding government revenue, as significantly low prices reduce tax collection.

Consumer Advocacy and Deregulation

Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), offers a contrasting perspective. He raises serious concerns that the Price Floor Programme undermines the Price Deregulation Policy.

The deregulation policy was intended to allow market forces—supply and demand—to determine prices, fostering competition and efficiency. COPEC argues that by imposing a floor, the NPA is effectively intervening in the market, preventing true competition and keeping prices artificially high. For consumers, the debate centers on whether the floor protects them from poor quality or shields them from potential savings.

Practical Advice

For stakeholders in the petroleum industry and consumers alike, navigating the outcome of the January 21 assembly requires understanding the implications of the Fuel Price Floor Programme.

For Oil Marketing Companies (OMCs)

1. Strategic Alignment: OMCs must evaluate their pricing strategies against the current benchmark. If the floor remains, companies should focus on operational efficiency rather than price wars to remain competitive.

2. Quality Assurance: Regardless of the policy outcome, maintaining fuel quality is non-negotiable. Companies should document their quality control processes to demonstrate compliance and build consumer trust.

For Consumers

1. Understanding Pricing: Consumers should recognize that the lowest price is not always the best value. The price floor aims to prevent the sale of adulterated or substandard fuel, which can be costly in the long run.

2. Monitoring the Market: Keep an eye on the outcomes of the COMAC assembly and subsequent NPA announcements. These decisions directly influence the price ceiling and floor in the coming months.

For Regulators

1. Transparency: To gain public and industry buy-in, the NPA must clearly communicate the mathematical models used to determine the price floor.

2. Flexibility: While the floor is currently deemed necessary, regulators should consider mechanisms to adjust the benchmark in response to global crude oil price fluctuations to avoid stifling legitimate competition.

FAQ

Conclusion

The emergency assembly on January 21, 2026, represents a critical juncture for Ghana’s downstream petroleum sector. The Fuel Price Floor Programme sits at the intersection of economic regulation, consumer protection, and business sustainability. While the NPA views it as a shield against market instability and quality degradation, groups like COPEC see it as a barrier to true price deregulation.

As COMAC deliberates, the outcome will likely set a precedent for how the industry balances competitive pricing with quality assurance. An amicable resolution between the NPA and industry players is essential to ensure that the market remains stable, consumers are protected from substandard products, and businesses can operate viably.