Petrol, diesel and liquefied petroleum gas (LPG) are expected to become cheaper in the first pricing window of July after the National Petroleum Authority (NPA) announced significant reductions in the official price floors for petroleum products.

According to the latest industry pricing notice, the minimum price for petrol has been reduced from GH¢13.39 per litre during the second pricing window of June to GH¢12.79 per litre for the first pricing window of July.

The GH¢0.60 reduction represents a 4.5 per cent decrease and could translate into lower prices at the pumps if Oil Marketing Companies (OMCs) adjust their retail prices accordingly.

Diesel recorded the largest reduction among the liquid fuels, with its price floor dropping by GH¢1.57 per litre—from GH¢15.11 to GH¢13.54 per litre—representing a 10.4 per cent decline.

Liquefied petroleum gas also saw a substantial cut, with the minimum selling price falling from GH¢13.23 per kilogram to GH¢10.11 per kilogram, a decrease of GH¢3.12 or 23.6 per cent.

The NPA explained that the published price floors represent the minimum prices at which OMCs and LPG Marketing Companies (LPGMCs) are permitted to sell petroleum products during the pricing window in line with the Petroleum Products Pricing Guidelines (PPPG).

However, the Authority noted that the price floors exclude charges such as premiums imposed by International Oil Trading Companies (IOTCs), the operating margins of Bulk Import, Distribution and Export Companies (BIDECs), and marketers' and dealers' margins. As a result, actual retail prices may vary depending on individual companies' pricing decisions.

The latest downward adjustments come on the back of declining international crude oil prices, which have retreated to about US$70 per barrel following the easing of supply concerns linked to the recent Middle East conflict.