NPA increases fuel price floor for March, adjusts petrol and diesel prices upward

The National Petroleum Authority (NPA) has announced an upward revision of the fuel price floor for the first pricing window of March, triggering adjustments in petrol and diesel prices at pumps nationwide.

Under the new minimum pricing structure effective March 1, the floor price for petrol has increased from GH¢10.24 to GH¢10.46 per litre, while diesel’s minimum price has been raised from GH¢11.34 to GH¢11.42 per litre. The regulatory adjustment aims to maintain sustainable pricing levels and ensure transparency across Ghana’s petroleum sector.

In a contrasting move, the NPA implemented a slight reduction in the liquefied petroleum gas (LPG) floor price, lowering it from GH¢9.43 to GH¢9.38 per kilogram, providing marginal relief for households relying on cooking gas.

Regulatory Framework and Compliance

The price floor policy, established in April 2024, serves to protect both consumers and the downstream petroleum industry by preventing destructive price competition among Oil Marketing Companies (OMCs). The regulation mandates that no OMC may sell fuel below the approved minimum during any pricing window.

Industry sources indicate that while some OMCs initially considered maintaining existing prices, the NPA’s regulatory position requires strict compliance, with companies currently selling below the new floor expected to adjust upward accordingly.

Market Projections

According to projections from the Chamber of Oil Marketing Companies (COMAC), retail prices could see further increases as companies respond to the new guidelines. Petrol prices may rise by approximately 2.89 percent, potentially reaching GH¢12.04 per litre, while diesel could increase by about 0.86 percent, possibly climbing to GH¢13.22 per litre.

Economic Context

The price adjustments coincide with rising global crude oil costs, with Brent crude recently reaching a seven-month high amid international geopolitical tensions. However, the marginal appreciation of the Ghana cedi in recent weeks has partially mitigated the impact on local consumers.

The NPA’s periodic pricing updates continue to balance global market dynamics with domestic economic realities, ensuring operational stability in the downstream petroleum sector while maintaining consumer protection measures.

Transport operators and motorists are expected to adjust to the increased fuel costs, which may have broader implications for transportation and logistics nationwide.

The LPG price reduction offers some relief for households and businesses dependent on gas for cooking and other activities, reflecting both global supply trends and the NPA’s commitment to price stability in essential energy products.