Fuel prices in Ghana are set to edge lower at the pumps from Tuesday, December 16, offering modest relief to motorists and households as the festive season approaches.
Petrol prices are expected to decline by between 1.64 and 3.89 percent to around 12.90 cedis (US$1.06) per litre, while diesel could fall by as much as 4.59 percent to roughly 13.20 cedis per litre, according to projections by the Chamber of Oil Marketing Companies.
Liquefied petroleum gas (LPG) prices are also forecast to drop by up to 2.16 percent, with a kilogram selling at about 14.00 cedis, the chamber said in its latest pricing outlook.
COMAC attributed the expected reductions mainly to falling international prices for refined petroleum products, even as crude oil prices posted a marginal increase. Petrol prices on the global market fell by 6.5 percent over the review period, diesel plunged by 11.67 percent, while LPG eased by 0.22 percent, it said, citing global oversupply.
The gains were partly offset by pressure on the local currency, with the cedi weakening slightly from 11.14 to 11.43 against the dollar during the period. Limited foreign exchange support, the chamber noted, constrained any stronger appreciation of the currency.
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The outlook also reflects seasonal demand dynamics linked to the year-end festivities, COMAC added.
Market analysts told an Accra-based media that further stabilisation of the cedi would be critical to sustaining the price relief at the pumps, warning that without recent currency pressures, fuel prices could have fallen more sharply in the second pricing window.
Background on Ghana’s Fuel Pricing system
Ghana operates a deregulated fuel pricing system under which pump prices are reviewed every two weeks, allowing oil marketing companies to adjust prices based on market conditions rather than direct government control. The system is overseen by the National Petroleum Authority, which issues pricing guidelines but does not set retail prices.
Domestic fuel prices are driven mainly by international prices of refined petroleum products, movements in the Ghana cedi against the US dollar, and a range of taxes and levies. Ghana imports most of its refined fuel, making pump prices highly sensitive to global market trends and exchange rate volatility.
Taxes and levies form a significant portion of fuel prices, funding road infrastructure, energy sector liabilities and stabilisation funds. As a result, currency depreciation has often offset declines in global oil prices, limiting the extent of price reductions at the pumps despite softer international markets.
