The National Petroleum Authority (NPA) has announced sharp increases in the minimum retail price floors for petrol, diesel and liquefied petroleum gas (LPG) for the first pricing window of August, with diesel recording the steepest adjustment.
The new pricing thresholds, which serve as the minimum retail prices for fuel sales, indicate that consumers and businesses should brace for higher fuel costs in the coming weeks.
Diesel posted the biggest increase, with its price floor rising from GH¢14.35 per litre in the second pricing window of July to GH¢16.97 per litre for the first pricing window of August. The GH¢2.62 increase represents an 18.3 percent jump, one of the largest adjustments recorded in recent times.
Petrol also recorded a significant increase, with the minimum retail price moving from GH¢13.28 per litre to GH¢14.53 per litre, representing a GH¢1.25 increase or 9.4 percent.
Liquefied petroleum gas (LPG) was not spared, as its price floor climbed from GH¢10.19 per kilogram to GH¢11.06 per kilogram, an increase of GH¢0.87 or 8.5 percent.
The revised price floors are the minimum retail thresholds that Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) are required to observe during the pricing window.
However, the figures do not include premiums charged by International Oil Trading Companies (IOTCs), operating margins of Bulk Import, Distribution and Export Companies (BIDECs), or the margins determined independently by marketers and dealers under the Petroleum Product Pricing Guidelines. As a result, actual pump prices are expected to be higher than the published floors.
The increase is expected to have the greatest impact on sectors that rely heavily on diesel, including transport, mining, construction, agriculture and manufacturing, where fuel constitutes a major operating cost.
Industry analysts say the latest adjustments reflect rising international crude oil prices and continued pressure on the local currency. Brent crude prices have increased amid renewed geopolitical tensions involving the United States and Iran, while the cedi has continued to weaken against the U.S. dollar.
The higher fuel prices are expected to push up transportation and logistics costs, increase production expenses for businesses, and could ultimately result in higher transport fares and consumer prices during the August pricing window.
