Thursday, 30 May

Fuel prices up: Petrol, diesel sell at ₵14.99, ₵14.80 per litre

Fuel attendant at work

Several Oil Marketing Companies have initiated price hikes for petroleum products at the pumps, in accordance with the bi-weekly review cycle.

Market Leader, GOIL, is currently retailing a litre of petrol at ₵14.99, while diesel is priced at ₵14.80.

The recent depreciation of the cedi against the dollar has been cited by some Oil Marketing Companies as a factor contributing to the price increase. Additionally, stakeholders have attributed the rise to the government's decision to reintroduce the Price Stabilization and Recovery Levy on petroleum product prices, which adds 16 pesewas to petrol and 14 pesewas to diesel.

The impact of the National Petroleum Authority's decision to establish a price floor for fuel on pump prices remains unclear at this time.

Starting this month, the NPA will implement revised pricing guidelines for petroleum products in Ghana.

Under these guidelines, a minimum pricing threshold, termed the "floor," will be established for petroleum products, preventing industry players from setting prices below this benchmark.

The revised guidelines, communicated through a memo dated March 27, 2024, came into effect on April 1, 2024.

The NPA will set and communicate price floors for deregulated products during two pricing windows each month: the 1st to the 15th and the 16th to the end of the month.

In a letter signed by the Deputy Chief Executive of the NPA, Mr Curtis Perry Okudzato, industry players were advised to adhere strictly to these guidelines.

Petroleum Service Providers (PSPs) will be required to comply with the price floors set by the NPA for each pricing window and refrain from selling products below these prices.

The amendment to the pricing guidelines follows a review of the Pricing De-Regulation Policy initiated by the NPA in response to industry concerns.

The revision aims to address price undercutting issues in the petroleum industry by ensuring a fair-pricing framework.

Key changes include the requirement for Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies to submit actual ex-pump prices to the NPA instead of indicative prices.

These prices must be communicated to the NPA by 12 noon on the working day before they take effect.

Additionally, the NPA will conduct regular price monitoring exercises at retail outlets to verify ex-pump prices.

OMCs and LPG Marketing Companies are mandated to prominently display ex-pump prices for all petroleum products at retail outlets, ensuring transparency and consistency.

Under the amended guidelines, PSPs must compute their prices using the Prescribed Petroleum Pricing Formula provided by the NPA.

Sanctions, ranging from fines of 5,000 to 20,000 Ghana cedis, will be imposed on companies found to violate the guidelines.