Consumers could pay less for fuel during the first pricing window of July after the National Petroleum Authority (NPA) announced significant reductions in the price floors for petrol, diesel and liquefied petroleum gas (LPG).
The revised price floors, which set the minimum prices at which Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) are permitted to sell petroleum products during the pricing window, reflect easing global crude oil prices following recent market volatility.
According to an industry notice, the NPA has reduced the petrol price floor to GH¢12.79 per litre for the first pricing window of July from GH¢13.39 per litre during the second pricing window of June. The GH¢0.60 reduction represents a 4.5 percent decrease.
Diesel recorded an even steeper decline, with its price floor falling from GH¢15.11 per litre to GH¢13.54 per litre. This represents a reduction of GH¢1.57 per litre, or 10.4 percent.
The price floor for liquefied petroleum gas (LPG) has also been reduced significantly, dropping from GH¢13.23 per kilogram to GH¢10.11 per kilogram. The GH¢3.12 reduction per kilogram represents a 23.6 percent decrease.
The reductions are expected to create room for lower retail fuel prices if OMCs pass on the lower costs to consumers during the upcoming pricing window.
Under the Petroleum Products Pricing Guidelines (PPPG), all OMCs and LPGMCs are required to comply with the approved price floors throughout each pricing window.
However, the published price floors do not represent the final pump prices consumers will pay. The figures exclude premiums charged by International Oil Trading Companies (IOTCs), the operating margins of Bulk Distribution and Export Companies (BIDECs), and other allowable cost components determined independently by the companies under the PPPG.
As a result, individual OMCs may set pump prices above the prescribed minimum depending on their operational costs and commercial considerations.
The latest downward review follows a decline in international crude oil prices to around US$70 per barrel, reversing much of the increase triggered by the recent conflict in the Middle East.
Industry analysts say the lower crude oil prices, coupled with the recent appreciation of the Ghana cedi against major trading currencies, have contributed to the reduction in domestic fuel price floors.
If reflected at the pumps, the lower price floors are expected to provide relief to motorists, commercial transport operators, businesses and households that have faced rising fuel costs in recent months.
Lower fuel prices could also help reduce transportation and logistics costs across the economy, easing inflationary pressures and supporting business activity.
The development is expected to be welcomed by consumers and businesses alike, particularly transport operators whose operating costs are heavily influenced by fuel prices.
