By Adnan Adams Mohammed
Consumers and motorists across the country are bracing for a massive hit to their wallets as the National Petroleum Authority (NPA) announced a sharp upward revision of the minimum price floors for petroleum products.
Effective from the March 16–31 pricing window, the new directive ensures that no Oil Marketing Company (OMC) can sell fuel below the government-mandated “floor,” effectively killing off the deep discounts some motorists have relied on.
The new price floors: a sharp leap
The adjustment represents one of the steepest single-window movements in recent history, particularly for diesel.
Product -Old Floor (GH¢)- New Floor (GH¢) Change
Petrol (Litre) -10.46 – 11.57 – +10.6%
Diesel (Litre) – 11.42 -14.35 – +25.6%
LPG (Kilogram) – 9.38 -10.67 – +13.7%
The NPA’s notice to OMCs was clear: compliance is mandatory. Companies currently selling below these rates must raise their pump prices by Monday to meet the new legal minimums.
Why pump prices will go higher
It is crucial to note that the GH¢11.57 for petrol and GH¢14.35 for diesel are “floors”—the absolute lowest price allowed. These figures exclude several critical costs that are added before the fuel reaches your tank, including:
● International Oil Trading Company (IOTC) premiums.
● Bulk Import and Distribution (BIDEC) margins.
● OMC and dealer margins.
● Government levies and taxes.
When these factors are added, industry experts warn the actual price at the pump will be much higher.
Industry leaders are painting a grim picture for the coming weeks. Dr. Riverson Oppong, Chief Executive of the Chamber of Bulk Oil Distributors, warned that given the current geopolitical volatility in the Middle East, a litre of fuel could realistically hit GH¢17.
Echoing this concern, Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), projected on March 12 that prices would likely oscillate between GH¢14 and GH¢16 per litre once all margins are factored in.
“The new benchmark offers an indication of expected pump prices… consumers are expected to pay significantly more,” industry observers noted.
The discounting directive
For years, competition among OMCs allowed savvy drivers to shop around for lower prices. However, with the NPA setting a higher floor, that competitive “cushion” has effectively vanished. OMCs now have very little room to absorb costs or offer discounts, as they are legally barred from selling below the NPA’s threshold.
As the March 16 window approaches, the ripple effect of these costs is expected to touch every corner of the economy, from transport fares to the price of basic food items, further straining the cost of living for the average Ghanaian.
