The National Petroleum Authority, NPA has suspended the price floor policy for only bulk oil import distribution and export companies, BIDEX.
The suspension took effect from the beginning of October 2024, following the BIDEX complaints that the price floor policy was negatively impacting their operations.
NPA’s Director of Regulations and Planning, Abass Ibrahim Tasunti said, the Authority is closely monitoring the impact of the suspension and will re-access the situation to ensure sustainability in the operations of the BIDEX
“Price floor policy was introduced to address a major concern in the industry which was price undercutting. And this price undercutting, if we, as we explained, were preventing the industry or the petroleum service providers, in particular, the BDCs and OMCs, from the world market.
So, I think in the implementation, the risk concerns are the nature by the nature of their business, the policy to address their issues about the unsustainability of the industry.”
“So, effective October 1, we suspended the publication of the price floors for the BDCs, which is the extra ending price floor. But for the OMC side, which is the expanded price floor, we continue to implement that,” Mr. Tasunti said.
