NPA Lowers Price Floors for Petrol, Diesel, and LPG in Second Half of June

NPA Lowers Price Floors for Petrol, Diesel, and LPG in Second Half of June

The National Petroleum Authority (NPA) has reduced the price floors for petrol, diesel, and liquefied petroleum gas (LPG) for the second pricing window of June, citing easing global oil prices and updated market conditions.

For diesel, the benchmark floor has been cut from GH¢15.49 to GH¢15.11 per litre, a drop of GH¢0.38 or about 2.5 percent.

Petrol saw the steepest decline, falling from GH¢15.20 to GH¢13.39 per litre — a reduction of GH¢1.81, or roughly 12 percent.

LPG also recorded a modest decrease, with the new floor set at GH¢13.23 per kilogram, down from GH¢13.48, representing a GH¢0.25 or 1.9 percent drop.

The NPA explained that these floors serve as the minimum benchmark for Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) when setting retail prices, in line with the Petroleum Product Pricing Guidelines (PPPG).

However, the benchmark excludes additional costs such as premiums charged by International Oil Trading Companies (IOTCs), margins for Bulk Import, Distribution and Export Companies (BIDECs), and dealer or marketer margins. These components are determined independently under the pricing framework.

The adjustments follow a review of government fuel support measures originally introduced to shield consumers from rising costs linked to global supply disruptions, including Middle East tensions. Under the revised intervention, government support for petrol has been fully withdrawn, while diesel support has been reduced from GH¢2.00 to GH¢1.07 per litre. These changes took effect in the second window of May and are set to last for two pricing cycles before another review.

The latest price floor reductions are expected to ease pressure on transport operators, manufacturers, and other fuel-dependent sectors, potentially helping to stabilise operating costs across the economy.