In a move that offers a significant breather to motorists and businesses across the country, the National Petroleum Authority (NPA) has announced a reduction in the price floors for petroleum products, effective May 1, 2026.
The adjustment, driven by a stabilization in global crude oil prices and a strengthening of the local currency, marks a departure from the volatile price hikes witnessed during the month of April.
According to the NPA’s pricing notice released on Tuesday, diesel consumers will see the most substantial benefit. The price floor for diesel has been set at GH¢14.30 per litre, a sharp decrease of GH¢1.80 from the previous window. Petrol prices will see a more marginal dip, set at GH¢13.25 per litre.
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Other adjustments include Liquefied Petroleum Gas (LPG) at GH¢13.02 per kilogramme and Kerosene at GH¢16.13 per litre.
Market Dynamics and Global Trends
The price drop follows a period of intense pressure in early April when Brent crude surged past $100 per barrel due to geopolitical instability in the Middle East. At that time, diesel prices at some pumps peaked at GH¢17.10.
An NPA spokesperson noted that the new figures reflect a “necessary correction” as international markets cool.
“The established price floors for the first half of May are a direct result of the favorable shifts in both the global oil market and our domestic exchange rate,” the official stated. “We expect Oil Marketing Companies (OMCs) to reflect these reductions at the pumps to ensure consumers feel the impact immediately.”
Mixed Reactions from Stakeholders
While the news has been welcomed by the general public, some industry players remain cautious.
“Any reduction is good news for our members, especially the GH¢1.80 drop in diesel,” said a representative from a local transport union. “However, we must remember that fuel costs are still significantly higher than they were at the start of the year. We are monitoring the situation before making any decisions regarding transport fares.”
Economic analysts suggest that the reduction could help slow the pace of inflation, which has been heavily influenced by logistics and transport costs. However, they warned that the sustainability of these prices depends largely on the government’s continued intervention in the price build-up, including various subsidies and margin removals.
Compliance and Competition
The NPA has directed all OMCs and LPG Marketing Companies (LPGMCs) to strictly adhere to the new price floors. Under Ghana’s deregulated pricing regime, these floors represent the minimum price, though companies are permitted to add competitive margins.
“The NPA will continue to monitor the industry to ensure that no marketing company undercuts the floor or overcharges beyond reasonable competitive limits,” the Authority added.
The new prices are set to take effect this Friday and will remain in force until the next bi-monthly review on May 15, 2026.
Economy Times