Fuel Prices to Drop from July 1
Motorists and households are set to receive some relief from rising transport and energy costs as fuel prices are projected to decline significantly from Wednesday, July 1, following a sharp fall in global crude oil prices and the continued appreciation of the Ghana cedi against the US dollar.
The Chamber of Petroleum Consumers (COPEC) has projected substantial reductions in the prices of petrol, diesel and liquefied petroleum gas (LPG) during the first pricing window of July, attributing the expected cuts to lower international refined petroleum prices and favourable exchange rate movements.
According to COPEC, the combined effect of declining Free-on-Board (FOB) prices and the strengthening cedi is expected to reduce pump prices across all major petroleum products, offering much-needed relief to consumers and businesses.
Petrol is expected to record a 6.21 percent reduction, with the average retail price projected to fall from the current GH¢14.24 per litre to about GH¢13.36 per litre. Depending on pricing by individual Oil Marketing Companies (OMCs), petrol is expected to sell between GH¢12.69 and GH¢14.03 per litre.
Diesel is projected to experience the largest reduction. COPEC indicated that the FOB price declined sharply from US$1,056.38 per metric tonne to US$896.02 per metric tonne, representing a 15.18 percent decrease. Consequently, the average retail price is expected to fall by 13.28 percent from GH¢16.26 per litre to approximately GH¢14.10 per litre. Retail prices are expected to range between GH¢13.39 and GH¢14.80 per litre.
Liquefied Petroleum Gas (LPG) is also expected to become more affordable. The international FOB price fell by 15.96 percent, dropping from US$652.65 per metric tonne to US$548.50 per metric tonne. Combined with the stronger cedi, the average retail price of LPG is projected to decline to GH¢10.05 per kilogram, with market prices expected to range between GH¢9.54 and GH¢10.55 per kilogram.
COPEC expressed optimism that Oil Marketing Companies would pass on the full benefit of the lower international prices to consumers, helping to ease the cost of transportation, household energy and business operations.
The consumer advocacy group also commended the government for allocating part of Ghana’s Jubilee crude oil entitlement to local refineries, describing the decision as a strategic intervention that could reduce fuel imports, strengthen local refining capacity and lessen pressure on the foreign exchange market.
The expected price reductions come as Ghana continues to benefit from improved exchange rate stability and easing global oil prices, developments that analysts believe could help moderate inflationary pressures and reduce operating costs across key sectors of the economy.
