NPA Cuts Petrol Price Floor by Nearly 13% for Second Half of November; Diesel Also Down, LPG Up

The National Petroleum Authority (NPA) has lowered the price floor for petrol by nearly 13 percent for the November 16–30 pricing window, offering motorists the prospect of further relief at the pumps, while diesel will see a more modest reduction and cooking gas is set to rise.

The new petrol floor stands at GH¢13.69 per litre, down from GH¢15.39 in the first half of November. Diesel falls to GH¢16.73 per litre from GH¢17.41. Liquefied petroleum gas (LPG), however, moves in the opposite direction, rising to GH¢15.93 per kilogramme from GH¢13.73.

The price floor is not the final pump price. It excludes premiums charged by international oil trading companies, operating margins of bulk import, distribution and export companies, and margins applied by oil marketing companies and LPG marketing companies. Those charges are determined independently by the respective companies under the prescribed Petroleum Products Pricing Formula.

Mixed Signals at the Pumps

The adjustments could produce uneven outcomes for consumers. Lower floors give marketers room to cut petrol prices, but final decisions rest with individual companies and their margin structures.

Some oil marketing firms have already signalled downward movement. Star Oil, a major player, has reduced prices three times over the past week and is currently selling petrol at GH¢15.55 per litre and diesel at GH¢18.37. Allied Oil is offering petrol at GH¢15.50 and diesel at GH¢18.20. JP has cut its petrol price from GH¢16.43 quoted on October 16 to GH¢15.95, with diesel reduced to GH¢18.35 from GH¢18.97.

Under current regulations, petroleum prices are supposed to be reviewed on the 1st and 16th of each month, though the NPA permits oil marketing companies to adjust pump prices in line with its guidelines.

Market Forces Behind the Numbers

The Chamber of Oil Marketing Companies has attributed recent mixed price movements to the cedi's appreciation and reduced prices of finished petroleum products and crude oil on the international market. The Ghana cedi has been relatively stable in recent weeks, though it remains under pressure from persistent corporate demand for dollars . The International Energy Agency has projected that global oil markets will swing to a supply surplus for the first time since the start of the Iran War as Persian Gulf exports recover.

Background: The Price Floor Mechanism

The NPA's price floor policy, introduced in April 2024, sets a minimum retail price for petrol, diesel and LPG, reset every two weeks based on import costs, taxes, port charges and regulatory levies . The regulator has defended the mechanism as necessary to maintain stability in a downstream sector heavily reliant on bank financing, warning that removing it could lead to uneven pricing and supply disruptions .

The policy has drawn criticism from consumer groups and some oil marketing executives who argue it prevents stations from passing on the full benefit of falling international prices . The NPA has maintained that the floor protects the sector from volatility while allowing marketers to compete above the minimum threshold.

For the upcoming pricing window, the sharp cut in the petrol floor suggests the regulator is responding to easing international product costs. Whether that translates into commensurate relief at the pumps will depend on how aggressively the oil marketing companies adjust their margins.