Fuel prices in Ghana are expected to edge down slightly at the pumps from Friday, January 16, marking the second reduction this month, as easing international petroleum prices and a stronger local currency lower import costs, industry data showed.
The projected cut is outlined in the latest pricing outlook by the Chamber of Oil Marketing Companies (COMAC), which informs pricing decisions across the downstream petroleum sector.
According to the outlook, the price of petrol is expected to fall by between 1.3 and 2.3 percent, potentially bringing the pump price to around 11.75 cedis (US$1.08) per litre. Diesel prices are projected to decline by up to 2.1 percent, with a litre expected to sell for about 12.45 cedis (US$1.15). Liquefied petroleum gas (LPG) could see the steepest reduction, dropping by as much as 5.1 percent to around 12.30 cedis (US$1.13) per kilogram.
The anticipated price cuts follow favourable movements on the international market, where prices of refined petroleum products have continued to soften despite a modest uptick in crude oil prices.
COMAC said global oversupply has weighed on prices of finished products, leading to declines during the second pricing window of the month. International petrol prices fell by about 1.1 percent, diesel by 0.7 percent and LPG by 3.4 percent over the period, the chamber noted.
The outlook also highlighted the role of Ghana’s currency, the cedi, which has strengthened sharply against the US dollar since the start of the year. For the January 16 pricing window, the cedi appreciated from about 11.52 to 10.90 per dollar, a gain of nearly 5.7 percent, significantly reducing the local currency cost of fuel imports.
Market analysts say the exchange rate movement has been a key factor behind the expected reductions.
“The appreciation of the cedi over the past two weeks has provided some breathing space for fuel pricing,” a downstream industry analyst told AFP. “When combined with lower international product prices, it creates room for marginal pump price cuts.”
Research firm Databank said near-term foreign exchange pressures on the cedi are likely to remain contained, partly due to the gradual rollout of a $1 billion allocation for January under the Bank of Ghana’s foreign exchange intermediation programme.
The central bank’s intervention programme is aimed at improving dollar liquidity in the market and smoothing volatility in the exchange rate, which has been a major driver of fuel price movements in recent years.
Oil marketing companies told local media that some retailers are expected to adjust prices immediately from Friday, while others may implement the changes in the coming days or early next week, depending on internal pricing cycles and existing stock levels.
Fuel prices in Ghana are reviewed twice monthly, with changes influenced by international oil prices, exchange rate movements, taxes and levies, and distribution costs. Although the expected reductions are modest, they come as welcome relief for consumers and transport operators who have faced elevated fuel costs over the past year.
Economists caution, however, that the outlook remains sensitive to global oil market dynamics and domestic currency stability.
“Any reversal in the cedi’s gains or renewed volatility in global energy markets could quickly reverse these marginal price cuts,” an Accra-based economist said.
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For now, industry players say the combination of a firmer currency and easing product prices has created limited but positive room for downward adjustments at the pumps.
