The National Petroleum Authority (NPA) has announced new minimum price floors for petroleum products for the second pricing window of March, effective from March 16 to March 31.
Under the revised benchmark, petrol will now have a minimum price of GH¢11.57 per litre, up from GH¢10.46.
Diesel has recorded a larger increase, rising from GH¢11.42 to GH¢14.35 per litre, a change industry observers describe as one of the sharpest adjustments for a single product in recent times.
The price of Liquefied Petroleum Gas (LPG) has also been raised to GH¢10.67 per kilogram from GH¢9.38.
In a notice to Oil Marketing Companies (OMCs) seen by JoyBusiness, the authority directed companies to comply with the new price floors.
“As per the Petroleum Products Pricing Guidelines, all Oil Marketing Companies and LPG Marketing Companies are required to comply with the above price floors for the window under consideration,” the NPA stated.
The authority clarified that the quoted prices exclude premiums charged by International Oil Trading Companies, as well as the operating margins of Bulk Import, Distribution and Export Companies and the marketers’ and dealers’ margins of OMCs and LPG marketing firms.
These additional costs, it said, will be determined independently by the companies in line with the Petroleum Products Pricing Guidelines.
Implications
The new price floors mean that no oil marketing company will be allowed to sell petrol, diesel or LPG below the approved levels during the pricing window.
Companies currently selling below these thresholds will be required to adjust their pump prices upward to comply with the directive.
The revised floors also provide an indication of the expected pump prices from March 16, although the final prices consumers pay could be higher once additional margins and operational charges are included.
Industry concerns
Some industry stakeholders have warned that the new pricing window could lead to one of the steepest fuel price increases in recent months.
The Chief Executive of the Chamber of Bulk Oil Distributors, Riverson Oppong, earlier told JoyBusiness that fuel prices could rise to around GH¢17 per litre depending on developments in the Middle East.
Similarly, the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, warned that pump prices could range between GH¢14 and GH¢16 per litre.
Industry players have also raised concerns that the new price floors may limit the ability of oil marketing companies to offer discount pricing to consumers.
In the past, some companies used selective discounts to slightly reduce pump prices, but the new directive may restrict that option during the current pricing window.
