Fuel Prices expected to drop sharply from June 16 as Global Oil Prices decline

Motorists across Ghana are expected to benefit from significant reductions in fuel prices beginning June 16, following projections by the Chamber of Oil Marketing Companies (COMAC) for the second pricing window of the month.

According to the latest pricing outlook, petrol, diesel and liquefied petroleum gas (LPG) are all expected to record price decreases, providing relief for consumers amid recent fluctuations in fuel costs.

Petrol Records Largest Expected Reduction

Petrol is projected to experience the most substantial decline, with prices expected to fall by as much as 9.31 percent.

Should oil marketing companies fully pass on the reductions to consumers, a litre of petrol could sell for approximately GH¢14.72, representing one of the sharpest fuel price cuts in recent months.

Diesel prices are also forecast to decline, with a litre expected to retail at around GH¢17.02, particularly among oil marketing companies that purchase products on credit from Bulk Oil Distributors.

LPG prices are anticipated to ease slightly, with a kilogram projected to sell for about GH¢17.20.

Industry sources indicate that diesel prices could have fallen further if not for the removal of the government-industry intervention mechanism, while LPG pricing continues to be influenced by existing procurement and tender arrangements.

Cedi Depreciation Limits Further Reductions

Despite the projected price cuts, industry analysts say consumers could have enjoyed even greater reductions if not for the recent depreciation of the Ghana cedi.

According to COMAC, the cedi weakened from GH¢11.59 to GH¢11.80 against the US dollar during the pricing period, representing a 2.45 percent decline in value.

NPA Announces New Price Floors

Meanwhile, the National Petroleum Authority (NPA) has revised downward its fuel 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, while diesel’s price floor has been lowered from GH¢15.49 to GH¢15.11 per litre.

The NPA has directed all industry players to comply with the new pricing thresholds, meaning no oil marketing company is expected to sell fuel below the approved minimum prices.

However, given the intense competition within the downstream petroleum sector, market observers believe major players such as GOIL PLC and Star Oil may price their products close to the new floor levels to attract customers.

Falling Global Oil Prices Drive Reductions

COMAC attributed the expected fuel price declines largely to falling crude oil prices and lower prices for refined petroleum products on the international market.

Crude oil prices have reportedly dropped from about $110 per barrel to $97 per barrel this month, representing a decline of roughly 12 percent.

The fall has been linked to weaker import demand from China, record-high crude oil exports from the United States, and continued releases from strategic petroleum reserves by member countries of the International Energy Agency.

Prices of refined petroleum products have also recorded substantial declines. COMAC estimates that LPG prices have fallen by 19.94 percent, petrol by 15.21 percent, and diesel by 10.17 percent on international markets.

Industry analysts further suggest that fuel prices could continue to decline in the coming pricing windows following reports of a potential agreement aimed at easing tensions in the Middle East, a development that could help stabilize global energy markets and provide additional relief for consumers.

Prince Antwi

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