NPA cuts petrol, LPG price floors for November as diesel rises

• Petrol: The price floor falls by GH¢0.70, from GH¢16.09 to GH¢15.39 per litre.

• LPG: The price floor decreases by GH¢0.16, from GH¢13.89 to GH¢13.73 per kilogram.

• Diesel: The price floor rises by GH¢0.32, from GH¢17.09 to GH¢17.41 per litre.

The revised price floors, which take effect from November 1 to 15, could create room for lower petrol and LPG prices at the pumps, although the final amounts consumers pay will depend on decisions by oil marketing companies.

The petrol price floor has been reduced from GH¢16.09 to GH¢15.39 per litre, representing a decrease of GH¢0.70 or 4.35%.

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For LPG, the minimum price has fallen from GH¢13.89 to GH¢13.73 per kilogram, a reduction of GH¢0.16 or 1.15%.

Diesel, however, is moving in the opposite direction. Its price floor has increased from GH¢17.09 to GH¢17.41 per litre, representing a rise of GH¢0.32 or 1.87%.

Also Read: Fuel prices to rise from September 16 as NPA raises petrol, diesel and LPG price floors: See latest prices

The latest changes follow the previous pricing window, which ran from October 16 to 31, when petrol and diesel price floors declined while LPG recorded a sharp increase.

During the second half of October, the NPA set the petrol price floor at GH¢16.09 per litre, down from GH¢16.45 in the first half of the month. Diesel fell from GH¢17.97 to GH¢17.09 per litre, while LPG rose from GH¢11.10 to GH¢13.87 per kilogram.

Also Read: Petrol, LPG drop, diesel rises as NPA sets new floors for second August pricing window: Latest rates

The November adjustments therefore offer some relief to petrol and LPG consumers compared with the previous pricing window, while diesel users face a higher minimum benchmark.

The latest figures reflect differing movements in the domestic petroleum market, where international product prices, exchange-rate movements and the pricing decisions of individual marketers can affect the cost of fuel.

However, the revised price floors do not guarantee that pump prices will fall or rise by the same amounts.

Also Read: NPA releases new fuel price floors for 4-15 August: See latest petrol and diesel rates

The NPA explains that the minimum prices exclude premiums charged by International Oil Trading Companies, operating margins of Bulk Import, Distribution and Export Companies, and the margins applied by Oil Marketing Companies (OMCs) and LPG Marketing Companies.

These charges are determined by the respective companies under the Petroleum Products Pricing Formula. Actual pump prices will therefore depend on how marketers adjust their costs and margins during the new pricing period.

Also Read: NPA increases fuel price floors; see latest prices

The latest adjustments come amid rising international crude oil prices, although the recent appreciation of the cedi could help cushion the effect of external price pressures on domestic fuel costs.

Consumers will have to monitor announcements from individual fuel retailers from November 1 to determine the actual prices at which petrol, diesel and LPG will be sold.