NPA Ghana: Fuel Price Floor Increases September 16, Petrol Hits GH¢16

• The National Petroleum Authority has increased the price floor for petrol to GH¢16.00 per litre and diesel to GH¢16.77 per litre, effective from September 16.
• Oil Marketing Companies are prohibited from selling petrol or diesel below these new minimums from Wednesday, October 2026.
• These price floors exclude premiums and operating margins, which companies determine independently under the Petroleum Products Pricing Guidelines (PPPG).
• COPEC projects petrol prices to average GH¢16.26 per litre and diesel to reach GH¢19.07 per litre due to rising international crude and refined product costs.
• COPEC has appealed to the government for extended subsidies, including a GH¢1 per litre relief for petrol and maintaining the GH¢2 per litre subsidy for diesel.

From Wednesday, October 2026, no Oil Marketing Company will be permitted to sell a litre of petrol below GH¢16.00 or diesel below GH¢16.77.

The National Petroleum Authority (NPA) in Ghana has announced an upward revision to the price floor for petroleum products, effective from the second "Pricing Window" beginning September 16. This regulatory adjustment mandates new minimum selling prices for key fuels across the country.

Under the updated directive, the price floor for petrol has been raised to GH¢16.00 per litre, an increase from its previous level of GH¢14.53. Similarly, the minimum price for diesel has been set at GH¢16.77 per litre, up from GH¢15.60. Additionally, Liquefied Petroleum Gas (LPG) will now have a price floor of GH¢10.97 per kilogram.

This change means that, from Wednesday, October 2026, no Oil Marketing Company (OMC) will be permitted to sell a litre of petrol below GH¢16.00 or diesel below GH¢16.77. The move by the National Petroleum Authority Ghana fuel prices is expected to significantly influence retail pricing strategies for all market participants.

The National Petroleum Authority's notice clarifies that these newly established price floors do not encompass all components of the final retail price. Specifically, the premiums levied by International Oil Trading Companies (IOTCs) are excluded from this floor.

Furthermore, the operating margins of Bulk Import, Distribution and Export Companies (BIDECs), as well as the marketers' and dealers' margins for Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs), are also not included in the mandated minimums. These specific components are to be determined independently by the respective companies, in line with the existing Petroleum Products Pricing Guidelines (PPPG). This framework underscores the nuanced approach to Ghana fuel pricing window regulations, where certain elements remain subject to market forces within a regulated floor.

The adjustment in the Ghana petrol diesel price floor GH¢16 is widely anticipated to lead to notable increases in the retail prices of petroleum products from their current levels. Industry experts suggest that Oil Marketing Companies are unlikely to absorb the current round of price hikes at the pumps, citing the rising operational costs faced by most of these firms.

The Chamber of Petroleum Consumers (COPEC) has offered specific COPEC Ghana fuel price projections for the period commencing September 16, 2026. COPEC anticipates that the average price for petrol could reach GH¢16.26 per litre, while diesel might climb to GH¢19.07 per litre. This represents a projected 4.24% increase for petrol from its current average of GH¢15.60 per litre, and a steeper 10.23% rise for diesel, moving from an average of GH¢17.30 to GH¢19.07 per litre.

COPEC attributes these significant projected increases primarily to a sharp surge in international crude oil and refined petroleum product prices. During the relevant pricing window, the global crude oil price reportedly escalated from $89.30 to $103.07 per barrel. For Liquefied Petroleum Gas (LPG), COPEC projects a selling price of GH¢15.32 per kilogramme, driven by a 16.45% increase in its international Free On Board (FOB) price.

In light of the anticipated price hikes, the Chamber of Petroleum Consumers has issued an appeal to the government for intervention. COPEC has specifically requested an extension of the existing subsidy program, proposing a GH¢1 per litre relief for petrol consumers.

The Chamber also advocated for the government to maintain the current GH¢2 per litre subsidy on diesel. Beyond governmental action, COPEC has urged Oil Marketing Companies Ghana pricing compliance to consider reducing their own margins. This measure, they argue, would help cushion consumers against the expected increases in fuel costs, demonstrating a call for shared responsibility in mitigating the economic impact.

Compliance officers and legal counsel for Oil Marketing Companies (OMCs) and other petroleum sector entities in Ghana must update their pricing strategies and internal controls to ensure strict adherence to the new NPA-mandated price floors, and monitor for further regulatory guidance on independently determined margins and potential government subsidy interventions.

Source: Original reporting via Joy Business