Fuel Price Floors Drop Ahead of July Pricing Window
Petrol, diesel and liquefied petroleum gas (LPG) price floors have fallen significantly ahead of the first pricing window of July, creating room for potential reductions in pump prices if Oil Marketing Companies (OMCs) pass on the lower costs to consumers.
An industry notice indicates that the National Petroleum Authority (NPA) has revised downward the minimum allowable prices for petroleum products, reflecting recent declines in global crude oil prices and easing cost pressures on refined fuel imports.
According to the NPA, the petrol price floor has been reduced to GH¢12.79 per litre for the upcoming pricing window, down from GH¢13.39 per litre in the second pricing window of June. This represents a decrease of GH¢0.60 per litre, or 4.5 percent.
Diesel recorded a sharper reduction, with the price floor falling from GH¢15.11 per litre to GH¢13.54 per litre. This translates into a decline of GH¢1.57 per litre, or 10.4 percent, making it the product with the steepest adjustment among the three fuels.
Liquefied petroleum gas (LPG) also saw a notable drop. The price floor has been reduced from GH¢13.23 per kilogram to GH¢10.11 per kilogram, representing a significant reduction of GH¢3.12 per kilogram, or 23.6 percent.
The price floors set by the NPA represent the minimum selling prices permitted for Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) during each pricing window under the Petroleum Products Pricing Guidelines (PPPG).
However, the Authority clarified that these floors do not include additional cost components such as premiums charged by International Oil Trading Companies (IOTCs), margins of Bulk Import, Distribution and Export Companies (BIDECs), or the profit margins of marketers and dealers. These elements are determined separately, meaning final pump prices may vary across stations.
The latest downward adjustment is largely attributed to the recent decline in global crude oil prices, which have retreated to about US$70 per barrel following earlier spikes linked to geopolitical tensions in the Middle East.
If fully reflected at the pumps, the reductions are expected to provide relief to motorists, transport operators, businesses and households, many of whom have faced rising fuel costs in recent pricing windows.
Analysts say the development could also help ease transport and logistics expenses, moderate inflationary pressures, and offer modest support to economic activity, particularly in sectors heavily dependent on fuel consumption.
