The Chamber of Bulk Oil Distributors (CBOD) has called on regulatory authorities to investigate oil marketing companies selling fuel below the approved minimum price, cautioning that the practice may point to irregularities in the downstream petroleum sector.
In an interview with 3Business on January 21, the Chamber’s Chief Executive, Dr Patrick Ofori, said such pricing behaviour undermines compliance and threatens the integrity of the industry. He explained that the floor price policy was designed to discourage illegal practices and ensure fair competition.
Dr Ofori stressed that any company claiming the ability to sell fuel below the regulated price should be examined to establish how its products are sourced and priced.
The appeal follows remarks by the Chief Executive of Star Oil, who indicated that the company could offer lower pump prices if not limited by the floor price policy.
The National Petroleum Authority introduced the floor price mechanism in 2024 to stabilise fuel prices and prevent predatory pricing. The Chamber of Bulk Oil Distributors says effective enforcement is crucial to safeguarding transparency and protecting compliant operators in the sector.