NPA increases price floor from September 16; petrol to sell at GH¢16, diesel at GH¢16.77

On September 16, the National Petroleum Authority (NPA) has raised the price floor for petrol and diesel, effective immediately and enforced until at least October 2026. Petrol will now be sold at a minimum of GH¢16.00 per litre, while diesel will sell for a minimum of GH¢16.77 per litre. These increases are in contrast to the previous price floors of GH¢14.53 for petrol and GH¢15.60 for diesel.

LPG, however, remains at GH¢10.97 per kilogram. The NPA's price floors exclude additional charges and profits added by oil trading companies, dealers, and marketers.

Industry experts anticipate that consumers will face significant price hikes across the board, with some projecting petrol prices to average GH¢16.26 per litre and diesel to average GH¢19.07 per litre. The Chamber of Petroleum Consumers (COPEC) estimates a 4.24% increase in petrol prices and a 10.23% increase in diesel prices, compared to the current averages.

The sharp rise in international crude oil and refined petroleum prices is the primary driver behind these projections. COPEC also notes that global crude oil prices have risen from $89.30 to $103.07 per barrel during the pricing window. Additionally, LPG could see a 16.45% increase, going from its current FOB price to GH¢15.32 per kilogram.

COPEC urges the government to extend its subsidy programs, proposing a GH¢1 per litre reduction for petrol and maintaining the GH¢2 per litre subsidy for diesel. The organization also recommends that oil marketing companies (OMCs) consider lowering their margins to alleviate the impact on consumers.