Petrol, diesel and liquefied petroleum gas (LPG) price floors have fallen sharply ahead of the first pricing window of July, paving the way for lower pump prices if Oil Marketing Companies (OMCs) pass on the reductions to consumers.
An industry notice sighted by Citi Business News shows the National Petroleum Authority (NPA) has set the petrol price floor at GH¢12.79 per litre for the first pricing window of July, down from GH¢13.39 per litre in the second pricing window of June.
The reduction of GH¢0.60 per litre represents a 4.5% decline.
Diesel recorded an even steeper drop, with the price floor falling to GH¢13.54 per litre from GH¢15.11 per litre, a decrease of GH¢1.57 per litre, or 10.4%.
For LPG, the price floor has been reduced to GH¢10.11 per kilogram from GH¢13.23 per kilogram, representing a decline of GH¢3.12 per kilogram, or 23.6%.
The price floors represent the minimum prices at which OMCs and LPG Marketing Companies (LPGMCs) are permitted to sell petroleum products during the pricing window.
Under the Petroleum Products Pricing Guidelines (PPPG), all OMCs and LPGMCs are required to comply with the prescribed price floors throughout the pricing window.
However, the price floors do not include premiums charged by International Oil Trading Companies (IOTCs), the operating margins of Bulk Import, Distribution and Export Companies (BIDECs), or the margins of marketers and dealers.
These cost components are determined independently by the respective companies in accordance with the PPPG, meaning actual pump prices may differ from the published price floors.
The latest reductions follow a retreat in global crude oil prices to about US$70 per barrel, reversing much of the price spike triggered by the recent conflict in the Middle East.
If reflected at the pumps, the lower price floors are expected to provide relief for motorists, transport operators, businesses and households.
They could also help moderate transport and logistics costs, easing inflationary pressures and providing modest support for economic activity after recent increases in petroleum prices.
