NPA announces fuel price reduction, see latest prices

The National Petroleum Authority (NPA) has announced a reduction in the price floor for petrol, diesel and liquefied petroleum gas (LPG) for the second pricing window of June, citing improved international market conditions and shifts in global fuel dynamics.

According to the NPA, the benchmark price floor for diesel has been reviewed downward to GH¢15.11 per litre, compared to GH¢15.49 per litre in the first June pricing window.

This represents a drop of GH¢0.38 per litre, equivalent to about 2.5 percent.

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Petrol recorded the most significant adjustment. The new price floor now stands at GH¢13.39 per litre, down from GH¢15.20 per litre previously.

This marks a reduction of GH¢1.81 per litre, or roughly 12 percent. LPG has also seen a moderate decline, with the price floor set at GH¢13.23 per kilogram, down from GH¢13.48 per kilogram.

This reflects a decrease of GH¢0.25 per kilogram, representing about 1.9 percent.

The NPA explained that these price floors serve as the minimum benchmark for Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) in setting retail prices for petroleum products within the second June pricing window, in line with the Petroleum Product Pricing Guidelines (PPPG).

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However, the Authority clarified that the benchmark excludes additional cost components such as premiums charged by International Oil Trading Companies (IOTCs), margins for Bulk Import, Distribution and Export Companies (BIDECs), as well as dealer and marketer margins.

These remain independently determined under the pricing framework.

The adjustments follow a review of government fuel support measures introduced to cushion consumers against rising fuel costs linked to global supply disruptions, including tensions in the Middle East.

Under the revised intervention, government support on petrol has been fully withdrawn, while diesel support has been reduced from GH¢2.00 per litre to GH¢1.07 per litre.

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These changes began with the second pricing window of May and are expected to remain in place for two pricing cycles before another review.

The latest reduction in fuel price floors is expected to ease pressure on transport operators, manufacturers and other fuel-dependent sectors, potentially helping to stabilise operating costs across the economy.