NPA Raises Fuel Price Floor for March, Petrol and Diesel Prices Adjusted

The National Petroleum Authority (NPA) has announced an increase in the fuel price floor for the first pricing window of March, prompting adjustments in petrol and diesel prices across Ghana. Effective March 1, the revised minimum prices set by the NPA are expected to guide how Oil Marketing Companies (OMCs) price petroleum products at the pumps.

Under the new pricing structure, the minimum price of petrol has been increased from GH¢10.24 to GH¢10.46 per litre, while the floor price for diesel rose from GH¢11.34 to GH¢11.42 per litre. The changes are intended to prevent fuel prices from falling below sustainable levels, ensuring transparency and stability in the petroleum sector.

Interestingly, the NPA also made a slight adjustment to liquefied petroleum gas (LPG) prices. The LPG floor price has been lowered slightly from GH¢9.43 to GH¢9.38 per kilogram, making cooking gas marginally more affordable for households.

The NPA’s price floor policy, first introduced in April 2024, is designed to protect the downstream petroleum sector and consumers by preventing destructive price competition among OMCs. According to the policy, no company is allowed to sell fuel below the approved floor price during a pricing window. Companies that are currently selling below the new floor are expected to adjust their prices upward to comply with regulations.

Some OMCs initially considered maintaining existing prices despite the new floor, but the NPA’s regulatory stance indicates that compliance is mandatory. Industry analysts note that most companies will likely revise their retail prices to align with the new minimums in the coming days.

Projections from the Chamber of Oil Marketing Companies (COMAC) suggest that the new floor could lead to further increases at the pump. Petrol prices may rise by approximately 2.89%, potentially reaching GH¢12.04 per litre, while diesel prices could increase by around 0.86%, possibly climbing to GH¢13.22 per litre, depending on how companies respond to market conditions.

The adjustment in fuel prices comes amid rising global crude oil costs, with Brent crude recently reaching a seven-month high due to international geopolitical tensions. While this has contributed to higher input costs for petroleum products, the marginal appreciation of the Ghana cedi in recent weeks has helped cushion the impact for local consumers.

For LPG, the slight reduction in the floor price may provide some relief for households and businesses that rely on gas for cooking and other activities. This adjustment reflects both global supply trends and the NPA’s efforts to maintain price stability in essential energy products.

As the March pricing window unfolds, motorists and transport operators are expected to adjust to the higher petrol and diesel costs, which could have broader implications for transportation and logistics in the country. The NPA’s periodic pricing updates continue to play a critical role in balancing global market forces with domestic economic realities, ensuring that the downstream petroleum sector operates smoothly while protecting consumers.

Source: Thepressradio.com