Ghana’s Fuel Price Floor: The Institutional Standoff

2026 began with a bang for Ghanaian drivers. What started as a competitive tussle between oil giants GOIL and Star Oil has spiraled into a full-blown price war. For the first time in a long while, we saw fuel prices drop to single digits, under GH¢10 per litre. The competition has gotten so fierce that GOIL, in a bid to win over drivers, has gone as far as serving free breakfast to customers at the pumps.

With Star Oil leading the race in Cost Leadership, it's CEO dropped a comment that has sparked a massive institutional standoff, dividing the energy sector into two warring camps.

The Spark: "We Could Sell for Lower"

The conflict kicked off when Philip Tieku, the CEO of Star Oil, made a bold claim. He stated that his company could sell petrol for as low as GH¢9.50 per litre during off-peak night hours (10 p.m. to 4 a.m.) to help drivers and the night-time economy.

However, there was a catch: he couldn't do it because the law forbids it.

Tieku pointed out that the National Petroleum Authority (NPA) enforces a "price floor", a minimum price that fuel stations are not allowed to go below. He argued that this rule is preventing companies from passing on full savings to consumers. This comment set off a chain reaction, drawing in regulators, associations, and think tanks who are now fighting over whether this rule protects the country or cheats the driver.

Context: What is the "Price Floor" and Why Is It There?

To understand the fight, you have to understand the rule.

Although Ghana’s fuel market is "deregulated" (meaning the government doesn't set the exact price the consumer pays), the NPA introduced the Petroleum Price Floor Programme in April 2024,.

Why was it introduced? The NPA and its supporters argue that without a minimum price, big companies with deep pockets could drop their prices so low that smaller stations can’t compete. The fear is that the small OMCs would go out of business, leaving only a few big giants who would then hike prices later. They also argue it protects the banks, as many fuel companies owe loans they couldn’t repay if they went bankrupt.

Stakeholder perspectives on the National Petroleum Authority's (NPA) fuel price floor mandate.

The Battle Lines: Who Said What?

The disagreement has led to serious drama, including resignations and calls for investigations.

Team "Scrap the Floor"

1. Star Oil: Things got so heated that on Wednesday, January 21, 2026, Star Oil formally suspended its membership from COMAC (the industry association). They left because they felt the Chamber was not representing their views fairly and giving them a bad perception for wanting to lower prices for consumers.

2. Chamber of Petroleum Consumers (COPEC) :COPEC has jumped to Star Oil’s defense. Duncan Amoah, the Executive Secretary, stated that Star Oil is being "victimised" for trying to help consumers. He argues that if any rule is needed, it should be a price ceiling (maximum price) to stop overcharging, not a floor to stop savings.

3. CEMSE :The Center for Environmental Management and Sustainable Energy (CEMSE) called for the "immediate" suspension of the price floor. They argue that "predatory pricing" is a myth in Ghana and that the floor simply allows inefficient stations to survive while punishing efficient ones. They believe the floor creates an "oligopoly" (a market run by a few) that hurts the poor.

4. ACEP:  The Africa Centre for Energy Policy views the price floor as a "lazy" shortcut that allows the regulator to avoid the hard work of actual policing. Instead of cracking down on the real villains, those smuggling illegal fuel and dodging taxes, ACEP argues the National Petroleum Authority (NPA),rather than doing the difficult job of weeding out cheaters and fixing "revenue losses," the regulator is punishing efficient companies, forcing consumers to pay more just to keep struggling, inefficient businesses alive.

Team "Keep the Floor"

1. National Petroleum Authority (NPA): The regulator is standing firm. Abass Tasunti from the NPA stated clearly that they have "no plans to remove this policy". They insist the industry is too sensitive to be left entirely wild and that a crash in the fuel sector would crash the banks that lent them money.

2. Chamber of Oil Marketing Companies (COMAC): COMAC, led by Chairman Gabriel Kumi, insists the floor is here to stay. Kumi called the policy a "democratic decision" and noted that in their association, "majority carries the day," regardless of how big Star Oil is.

3. Institute for Energy Security (IES): The IES took perhaps the most aggressive stance. On January 19, 2026, they issued a statement defending the floor and called on the NPA to investigate Star Oil. They questioned if Star Oil’s proposed GH¢9.50 price was genuine or a trick to kill off competition, warning that "unregulated price wars" usually end in disaster for the consumer,.

4. Election Watch: Election Watch Ghana asserts that the price floor is a necessary safety net because, without it, fuel stations would engage in a dangerous "race to the bottom" where the only way to survive the ultra-low prices is to compromise on fuel quality. So though consumers save money upfront, they are likely to end up with bad fuel that damages their vehicles.

GOIL’s Sentiment: The National Giant Speaks

While GOIL hasn't issued a formal position paper like the think tanks, their stance is clear from the comments of their Group CEO, Edward Bawa.

In a direct response to the comments of the , Bawa questioned the credibility of those calling for price cuts (referring to Star Oil). He pointed out that while Star Oil is complaining, they haven't even dropped their prices to the current allowed minimum of GH¢9.80 yet, they are selling at GH¢9.97. By attacking the logic of the "price cutters," GOIL indirectly implies they support the price floor as a necessary tool for fair play.

What Happens Next?

For now, drivers are enjoying some of the lowest fuel prices in years. But behind the scenes, the battle is far from over. With the largest player, Star Oil, leaving the industry body and the regulator, NPA, standing firm, the debate over government-protected prices versus free-market pricing is just beginning. Time will tell whether the pressure forces the NPA to adjust or if the price floor remains in place.