Franklin Cudjoe, President of policy think tank IMANI Africa, has criticised Ghana’s National Petroleum Authority (NPA) for imposing a minimum retail price on fuel, arguing that the policy limits competition and discourages innovative pricing strategies among oil marketing companies.
Speaking on Channel One TV’s The Big Issue on Saturday, January 24, Mr Cudjoe said the price floor, intended to prevent predatory pricing, overlooks the diverse capacities and business strategies of individual companies operating in Ghana’s fuel market.
“All I see in what appears to be a sort of price war is actually healthy for the economy,” he said. “Companies should be allowed to set prices according to their own scale and operational capacity, rather than be constrained by an artificial minimum.”
He warned that the policy fosters a “defeatist mindset” by treating all companies as if they operate on the same scale, discouraging strategic pricing and efficiency improvements.
The remarks come amid ongoing disputes in the fuel sector, with oil marketing companies such as Star Oil and GOIL expressing frustration over NPA’s regulation. Star Oil recently suspended its membership in the Chamber of Oil Marketing Companies (COMAC), citing misrepresentation of its stance on the price floor in public discussions.
Mr Cudjoe urged regulators to reconsider the policy, advocating for a more market-driven approach that allows companies to compete freely while maintaining safeguards against predatory practices.
“The conversation around fuel pricing should reflect the realities of competition, not rigid controls that ignore differences in company size, resources, and strategy,” he said, calling for reforms that balance market freedom with consumer protection.
