NPA increases fuel price floors; see latest prices

Fuel prices in Ghana are facing upward pressure after the National Petroleum Authority (NPA) increased the approved price floors for petrol, diesel and liquefied petroleum gas (LPG) for the second pricing window of July.

Figures from NPA sighted by Channel One News indicates that the minimum benchmark for petrol has been adjusted to GH¢13.28 per litre, up from GH¢12.79 per litre during the first pricing window of the month.

The new petrol price floor represents an increase of GH¢0.49 per litre, translating into a 3.8% rise.

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Diesel recorded a bigger adjustment, moving from GH¢13.54 per litre to GH¢14.35 per litre.

This reflects an increase of GH¢0.81 per litre, equivalent to a 6.0% upward change.The price floor for LPG has also increased slightly, rising from GH¢10.11 per kilogram to GH¢10.19 per kilogram. The adjustment represents an increase of GH¢0.08 per kilogram, or 0.8%.

The latest revision reverses the recent trend of declining fuel price benchmarks, as the NPA updates the figures based on prevailing conditions in the petroleum market.

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Under the Petroleum Product Pricing Guidelines (PPPG), the approved price floors serve as the minimum levels that Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) must consider when setting prices during each pricing period.

However, the benchmarks do not include additional charges such as premiums applied by International Oil Trading Companies (IOTCs), operating margins of Bulk Import, Distribution and Export Companies (BIDECs), and the margins of fuel marketers and dealers.

These components are determined separately by the respective companies in line with the PPPG.The upward adjustment comes amid rising concerns in the global oil market, following renewed tensions in the Middle East involving the United States and Iran.

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The developments have contributed to a rise in international crude oil prices, with Brent crude trading above US$80 per barrel.

Industry observers warn that if global oil prices remain elevated, Ghana could experience further pressure on ex-pump fuel prices, depending on movements in international markets and the performance of the local currency.