The National Petroleum Authority (NPA) has revised the minimum price thresholds for petroleum products for the second pricing window of March, which will take effect from March 16 to March 31.
Under the new pricing floor, petrol will now sell for no less than GH¢11.57 per litre, up from the previous GH¢10.46. Diesel has also recorded a substantial increase, rising from GH¢11.42 to GH¢14.35 per litre, a change analysts say ranks among the steepest adjustments for a single pricing window in recent times.
The price of Liquefied Petroleum Gas (LPG) has likewise been revised upward, moving from GH¢9.38 to GH¢10.67 per kilogram.
In a directive to oil marketers, the NPA instructed all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to adhere to the approved minimum prices in line with the Petroleum Products Pricing Guidelines (PPPG).
The Authority explained that the stated price floors do not include additional costs such as premiums imposed by international oil traders or the operational margins of Bulk Import, Distribution and Export Companies (BIDECs), as well as the margins applied by OMCs and LPG marketers. These charges, it said, will be determined separately by the companies under the PPPG framework.
Impact on pump prices
With the revised benchmarks in place, no marketer will be permitted to sell fuel below the stipulated price levels within the pricing window.
Oil marketing firms currently retailing below the new thresholds will therefore need to adjust their pump prices upward to comply with the directive.
The updated price floors also serve as an early indicator of potential pump prices, which could climb further once taxes, levies, and operational margins are added.
Industry reactions
Industry stakeholders have expressed concern that the new pricing window could see one of the sharpest increases in fuel prices in recent months.
Chief Executive of the Chamber of Bulk Oil Distributors, Dr. Riverson Oppong, earlier indicated that fuel prices could reach GH¢17 per litre, citing developments in global oil markets and tensions in the Middle East.
Similarly, Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers, projected that petrol prices could fall within the GH¢14 to GH¢16 per litre range during the period.
Analysts also note that the new minimum price requirement could limit the ability of oil marketing companies to offer discounted pump prices, a strategy sometimes used in the past to attract customers.
It remains uncertain whether competition among retailers will lead some companies to absorb part of the anticipated cost increases to ease the burden on consumers.