The Government of Ghana has revised its recent measures aimed at cushioning motorists against soaring pump prices by scrapping the 36-pesewa relief on petrol and reducing the GH¢2 relief on diesel to GH¢1.07 for the second pricing window, effective May 16.
A statement from the Ministry of Energy and Green Transition, signed by Richmond Rockson Esq. on Friday, confirmed that the decision was taken after a Cabinet meeting chaired by President John Dramani Mahama, which reviewed developments in the international oil market and the impact of global price volatility on domestic fuel costs.
The new measure is expected to run for two pricing windows, subject to further review based on market conditions.
The government says it will continue to monitor global market trends and adjust its policy response accordingly to balance fiscal sustainability with consumer protection.
This latest development is expected to push pump prices upwards.
Already, petrol, diesel, and LPG price floors published by the petroleum downstream regulator, the National Petroleum Authority (NPA), show marginal increases in pump prices, with petrol pegged at GH¢14.60 per litre, diesel at GH¢15.81 per litre, and LPG at GH¢13.16 per kilogram.
This compares with the first pricing window of May, when petrol sold at a floor price of GH¢13.25 per litre, diesel at GH¢14.30 per litre, and LPG at GH¢13.02 per kilogram.
The changes indicate that petrol price floors increased by GH¢1.35 per litre. Diesel recorded the highest increase, rising by GH¢1.51 per litre.
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LPG price floors also went up by 14 pesewas per kilogram for the second pricing window of May.
The NPA explained that the price floors exclude premiums charged by international oil trading companies, operating margins of bulk import, distribution, and export companies, as well as marketers’ and dealers’ margins.
Under the Petroleum Products Pricing Guidelines, oil marketing companies and LPG marketing companies are required to comply with the approved price floors for the pricing window under consideration.
The price floor is the minimum benchmark price set by the National Petroleum Authority for fuel products during a specific pricing window.
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