Fuel prices go up again; transport fares remain unchanged

The National Petroleum Authority (NPA) has increased the price floors for petrol, diesel and liquefied petroleum gas (LPG) for the first pricing window of August compared with the second pricing window of July, indicating continued upward pressure on fuel prices.

According to the NPA, the petrol price floor has increased from GH¢13.28 to GH¢14.53 per litre, an increase of GH¢1.25, or 9.4 per cent.

The diesel price floor has risen from GH¢14.35 to GH¢16.97 per litre, an increase of GH¢2.62, or 18.3 per cent. This is one of the largest increases in diesel price floors in recent times and is expected to raise operating costs in the transport, mining, construction, manufacturing and agricultural sectors.

The LPG price floor has also increased from GH¢10.19 to GH¢11.06 per kilogram, an increase of GH¢0.87, or 8.5 per cent.

The NPA explained that the price floors are the minimum retail prices that Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) must observe during the pricing window. They do not include premiums charged by International Oil Trading Companies (IOTCs), operating margins of Bulk Import, Distribution and Export Companies (BIDECs), or marketers' and dealers' margins.

The higher price floors come as several OMCs continue to increase pump prices.

The latest adjustments suggest fuel prices are likely to remain under pressure in the first pricing window of August, with higher fuel costs expected to increase transportation, logistics and production expenses and could lead to higher transport fares and consumer prices.