Consumers are set to pay more for petroleum products from Wednesday, September 16, after the National Petroleum Authority (NPA) increased the minimum price floors for petrol, diesel and Liquefied Petroleum Gas (LPG) for the second pricing window of September.
Fresh price floor data from the NPA seen by Citi Business News show that the minimum price for petrol has been set at GH¢16 per litre, while diesel will have a floor price of GH¢16.77 per litre.
The minimum price for LPG has also been increased to GH¢10.97 per kilogramme.
The latest figures represent increases across all three products compared with the price floors announced for the first pricing window of September.
The petrol price floor has risen by GH¢1.47 per litre, from GH¢14.53 to GH¢16, while diesel has increased by GH¢1.17, from GH¢15.60 to GH¢16.77.
The LPG floor price has recorded a marginal increase of GH¢0.12 per kilogramme, from GH¢10.85 to GH¢10.97.
Pump prices could rise further
The NPA price floors do not necessarily represent the final prices consumers will pay at the pumps.
Under the Petroleum Product Pricing Guidelines, Oil Marketing Companies (OMCs) and LPG Marketing Companies are required to comply with the prescribed minimum price floors for the applicable pricing window.
However, the floors exclude premiums charged by International Oil Trading Companies, operating margins of Bulk Import, Distribution and Export Companies, as well as marketers’ and dealers’ margins.
These components are determined independently by the respective companies in accordance with the pricing guidelines.
Industry projections therefore point to potentially higher pump prices from Wednesday.
The Chamber of Petroleum Consumers (COPEC) is forecasting a 4.24% increase in petrol prices and a sharper 10.23% rise in diesel prices during the second pricing window.
Under the projection, diesel could sell at about GH¢19.07 per litre, while petrol could reach approximately GH¢16.26 per litre.
LPG is also expected to rise to around GH¢15.32 per kilogramme, according to COPEC.
COPEC calls for fuel subsidy extension
COPEC has subsequently appealed to government to extend its fuel subsidy intervention to cushion consumers from the expected increases.
The group is proposing a GH¢1 per litre relief on petrol, while maintaining the existing GH¢2 per litre relief on diesel until international petroleum benchmarks return to more normal levels.
Global oil prices add pressure
The expected increases are being attributed largely to higher international crude oil and refined petroleum product prices, amid heightened tensions in the Middle East and concerns over potential disruptions to global supply.
Ghana’s dependence on imported refined petroleum products leaves domestic fuel prices particularly sensitive to movements in international oil prices and exchange-rate conditions.
A sustained increase in global petroleum prices could therefore feed through to the wider economy, raising transportation and logistics costs while adding pressure to production expenses and household budgets.
The latest NPA price floors consequently set the stage for another potentially challenging pricing window for consumers and businesses from September 16.
