Consumers across the country are expected to experience significant relief at fuel pumps from Wednesday, July 1, as the Chamber of Petroleum Consumers (COPEC) projects a sharp reduction in the retail prices of petroleum products for the next pricing window.
The development, according to COPEC, is driven by a combination of falling global crude oil prices and the continued appreciation of the Ghana cedi against the US dollar.
Global Oil Price Drop and Strong Cedi Driving Reduction
COPEC explained that the expected price adjustment follows a 19.69% decline in global crude oil prices, which dropped from $97.32 per barrel to $78.16 per barrel within the current pricing window.
In addition, the Ghana cedi recorded a 3.14% appreciation against the US dollar, further strengthening local purchasing power and reducing import costs for petroleum products.
Petrol Prices to See Moderate Reduction
For petrol, COPEC noted that the international Free-on-Board (FOB) price fell by 6.92%, translating into a projected average retail pump price of GH¢13.36 per litre.
This represents a 6.21% decrease from the current mean price of GH¢14.24 per litre.
COPEC further projects that petrol could sell between GH¢12.69 and GH¢14.03 per litre, depending on the pricing strategy of individual Oil Marketing Companies (OMCs).
Diesel Expected to Record Steeper Drop
Diesel consumers are expected to benefit even more, as international FOB prices dropped by 15.18%.
COPEC estimates that diesel could retail at an average of GH¢14.10 per litre, down from the current mean price of GH¢16.26 per litre, representing a significant 13.28% reduction.
Prices are projected to range between GH¢13.39 and GH¢14.80 per litre across various fuel stations nationwide.
LPG Prices Also Set to Fall
Liquefied Petroleum Gas (LPG) users are also expected to benefit from the global price downturn.
COPEC reports a 15.96% drop in international FOB prices, with LPG projected to sell between GH¢9.54 and GH¢10.55 per kilogram in the new pricing window.
COPEC Calls for Immediate Price Pass-Through
The Chamber is urging Oil Marketing Companies to pass on the full benefit of the price reductions to consumers without delay, stressing that the development should provide relief to households, transport operators and businesses affected by previous fuel price increases.
COPEC noted that timely price adjustments would help ease cost-of-living pressures and improve transport fares across the country.
Government Policy and Refining Support Commended
COPEC also commended government for allocating part of its crude oil entitlement from the Jubilee Field to support local refining operations.
According to the chamber, this policy direction could reduce dependence on imported refined petroleum products, ease pressure on the cedi, and contribute to long-term price stability in Ghana’s downstream petroleum sector.
NPA Also Revises Price Floors
Meanwhile, the National Petroleum Authority (NPA) has also adjusted downward the price floors for the first pricing window of July.
The revised minimum benchmarks are:
- Petrol: GH¢12.79 per litre
- Diesel: GH¢13.54 per litre
- LPG: GH¢10.11 per kilogram
The NPA explained that these price floors represent the minimum allowable selling prices for Oil Marketing Companies and LPG Marketing Companies during the pricing period.
Big Picture: Relief for Consumers Amid Economic Pressure
The projected fuel price reduction is expected to ease transportation costs and provide temporary relief for households and businesses, especially as Ghana continues to navigate inflationary pressures and currency fluctuations.
COPEC maintains that market conditions currently favour downward adjustments, and industry players are expected to respond accordingly in the coming days.