Motorists across Ghana are expected to benefit from a significant drop in fuel prices beginning June 16, following projections released by the Chamber of Oil Marketing Companies (COMAC). The latest pricing outlook indicates that petrol, diesel and liquefied petroleum gas (LPG) will all record reductions during the second pricing window of June.
Petrol Records Sharpest Drop
Petrol is projected to experience the largest reduction, with prices expected to decline by as much as 9.31%.
Should oil marketing companies fully implement the projected adjustment, a litre of petrol could retail at approximately GH¢14.72, marking one of the most substantial fuel price reductions in recent years.
Diesel prices are also expected to fall, with a litre likely to sell at around GH¢17.02, particularly among oil marketing companies that purchase products on credit from Bulk Oil Distributors.
LPG prices are forecast to ease slightly, with a kilogram expected to retail at about GH¢17.20.
Industry analysts note that diesel prices have not fallen as sharply because of the complete removal of the government-industry intervention mechanism. Meanwhile, LPG pricing continues to be influenced by existing tender arrangements.
According to COMAC, fuel prices could have dropped even further if not for the recent depreciation of the cedi. During the pricing period, the local currency weakened from GH¢11.59 to GH¢11.80 against the US dollar, representing a 2.45% decline in value.
NPA Lowers Price Floors
The National Petroleum Authority (NPA) has announced new price floors for the June 16–30 pricing window.
The minimum price for petrol has been reduced from GH¢15.20 per litre during the first half of June to GH¢13.39 per litre. Diesel’s price floor has also been lowered from GH¢15.49 to GH¢15.11 per litre.
The NPA has directed all industry players to comply with the revised price floors, meaning no oil marketing company is permitted to sell below the approved rates.
However, with competition intensifying within the downstream petroleum sector, market observers expect some major operators, including GOIL and Star Oil, to set prices close to the new minimum thresholds.
Factors Driving the Price Decline
COMAC attributes the anticipated reductions primarily to falling crude oil prices and declining refined petroleum product prices on the international market.
Crude oil prices reportedly fell from approximately US$110 per barrel to US$97 per barrel during the period under review, representing a decline of about 12%.
The downturn has been linked to weaker import demand from China, record-high oil exports from the United States and continued releases from strategic petroleum reserves by member countries of the International Energy Agency (IEA).
Refined petroleum products have also recorded significant price declines on the international market. COMAC estimates that LPG prices dropped by 19.94%, petrol by 15.21% and diesel by 10.17% during the period.
Industry sources further indicate that crude oil prices could decline further in the coming weeks following reports of a new agreement aimed at ending the conflict in the Middle East, a development that could provide additional relief for consumers in future pricing windows.
