Petrol and diesel prices to drop slightly in May; LPG expected to surge – COMAC
Petrol and diesel prices are expected to record marginal declines at the pumps in the first pricing window of May, while liquefied petroleum gas (LPG) is projected to see a significant increase.
This is according to the latest outlook from the Chamber of Oil Marketing Companies (COMAC), which tracks pricing trends in the downstream petroleum sector.
The chamber projects that petrol prices could fall by 0.51%, while diesel is expected to drop more sharply by 6.77%. In contrast, LPG prices are forecast to rise by 10.41%, despite a general decline in international refined product prices during the period.
COMAC attributed the expected reduction in petrol and diesel prices to lower global benchmark prices and the continued impact of a government–industry intervention aimed at cushioning consumers.
However, the anticipated increase in LPG prices is linked to delayed adjustments from the current tender arrangement, which previously helped absorb price shocks but is now reflecting in the market.
Global crude and refined product trends
On the international market, crude oil prices fell significantly in early May, dropping from $129.80 per barrel to $113.80 per barrel, representing a 12.33% decline.
The downward trend has been linked to improved global market sentiment around geopolitical tensions, particularly expectations that the most intense phase of the US–Iran standoff may have eased.
However, recent developments in the Middle East, including reports of the United Arab Emirates’ exit from OPEC, have introduced fresh uncertainty into global energy markets.
Refined petroleum products also recorded declines within the pricing window. Diesel fell by 14.16%, LPG by 13.11%, and petrol by 1.08% on the international market.
Cedi performance and local pricing outlook
The Ghana cedi also experienced a slight depreciation against the US dollar, weakening from GH¢11.13 to GH¢11.21, a 0.65% decline over the period.
In response to these market movements, the National Petroleum Authority (NPA) has adjusted price floors for petroleum products for the first pricing window of May.
Petrol is expected to sell at a minimum of GH¢13.25 per litre, slightly lower than GH¢13.27 recorded in the previous pricing window. Diesel saw a more notable reduction, with its floor price dropping from GH¢16.10 to GH¢14.30 per litre, a decline of GH¢1.80.
In contrast, LPG recorded a sharp upward revision, with its price floor increasing from GH¢10.79 to GH¢13.02 per kilogram, representing a rise of GH¢2.23.
The NPA has directed all Oil Marketing Companies and LPG Marketing Companies to adhere strictly to the stipulated price floors under the Petroleum Products Pricing Guidelines.
The regulator noted that the price floors exclude additional charges such as premiums from international oil traders, margins of bulk import, distribution and export companies, as well as dealer and marketer margins, which are determined independently within the regulatory framework.
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