Some oil marketing companies (OMCs) have begun reducing fuel prices at the pumps.

Industry giants have moved to cut the prices of petrol and diesel in line with the price floor announced by the National Petroleum Authority last week.

Our checks on the market this morning showed that both Star Oil and Goil are selling petrol at GH¢ 13.25 per litre.

However, for diesel, Star Oil has reduced its price from GH¢16.10 two weeks ago to GHC 15.55.

Goil, on the other hand, is selling a litre of diesel at GH¢15.66, down from its April 16 price of GH¢16.10.

National Petroleum Authority’s price floor

A review of the data shows that both players have priced in line with the price floor announced by the National Petroleum Authority last week.

According to the Authority, petrol has been pegged at GH¢13.25 per litre, excluding additional margins and charges.

Diesel has a floor price of GH¢14.30 per litre, while LPG is set at GH¢13.02 per kilogramme. Kerosene and Marine Gas Oil Local are pegged at GH¢16.13 and GH¢15.41, respectively.

Compared to the previous mid-April window, petrol has seen a marginal drop of 2 pesewas, while diesel has declined significantly by GH¢1.80 per litre.

In a notice to OMCs, the Authority stated, "As per the Petroleum Products Pricing Guidelines (PPPG), all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) are entreated to comply with the above price floors for the window under consideration.”

It clarified that the quoted prices exclude premiums charged by international oil trading companies, as well as margins for bulk import, distribution and export companies, and retailers.

“These will be independently determined by the companies as pertains under the PPPG,” the Authority added.

Reasons for the reduction

Data from the Chamber of Oil Marketing Companies shows petrol could drop by up to 0.51% per litre. This could see some oil marketing companies retail petrol at around GH¢14.51 per litre, particularly those that purchase products on credit from bulk oil distributing companies.

Diesel is projected to record one of the steepest reductions in recent months, falling by 6.77% and likely selling at about GH¢15.87 per litre.

In contrast, LPG is expected to rise by as much as 10.41% per kilogramme, despite generally lower international prices.

According to the Chamber, the downward movement in petrol and diesel prices is largely driven by falling international market prices and ongoing joint government and industry interventions aimed at cushioning consumers.

Global crude oil prices fell significantly during the pricing window, from $129.80 per barrel to $113.80 per barrel, representing a 12.33% decline.

However, these declines were not strong enough to fully offset the impact of the cedi’s depreciation during the period.

The Ghana cedi weakened slightly against major currencies, moving from GH¢11.1324 to GH¢11.2057 per US dollar, representing a 0.65% dip.