Petrol, LPG floors fall as diesel price rises
The National Petroleum Authority (NPA) has reduced the price floors for petrol and Liquefied Petroleum Gas (LPG) for the second pricing window of August, while the benchmark for diesel has increased marginally.
The latest figures from the NPA show that the petrol price floor has fallen by GH¢0.61 per litre, representing a 4.2% decline, from GH¢14.53 in the first August pricing window to GH¢13.92 per litre.
The LPG price floor has also been reduced, falling by GH¢0.08 per kilogram, or about 0.7%, from GH¢11.06 to GH¢10.98 per kilogram.
Diesel, however, has moved in the opposite direction, with its price floor rising by GH¢0.22 per litre, equivalent to 1.5%, from GH¢14.97 to GH¢15.19 per litre.
The latest adjustments could translate into lower pump prices for petrol and LPG consumers, although the actual prices charged at filling stations will depend on the margins and other applicable charges determined by individual petroleum marketing companies.
The NPA’s price floors represent the minimum levels at which Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) are expected to retail the products during a particular pricing window.
Under the Petroleum Product Pricing Guidelines (PPPG), the price floors do not include premiums charged by International Oil Trading Companies (IOTCs), operating margins of Bulk Import, Distribution and Export Companies (BIDECs), or the margins of marketers and dealers.
These additional components are determined separately and can therefore result in pump prices differing from the published NPA floors.
The latest adjustment follows a government intervention in the previous pricing window aimed at limiting the impact of rising diesel prices on consumers and businesses.
Government reduced the regulatory margin on diesel by GH¢2 per litre for one month, prompting the NPA to lower the diesel price floor from GH¢16.97 to GH¢14.97 per litre in the first August window.
With the diesel floor now rising to GH¢15.19 per litre, transport operators and businesses that depend heavily on diesel could continue to face elevated operating costs.
The impact could be particularly significant for commercial transport operators, businesses that rely on diesel-powered generators and other energy-intensive activities.
For motorists, the 4.2% reduction in the petrol price floor provides some room for lower pump prices. However, the extent of any reduction will ultimately depend on how individual OMCs adjust their retail prices.
The decline in the LPG floor could similarly offer some relief to households and businesses using the fuel, although market-specific margins will determine the final price paid by consumers.
