Effective November 19, 2024, fuel prices have seen some adjustments at pumps across Ghana, with certain Oil Marketing Companies (OMCs) implementing reductions. This comes as part of the routine two-week review cycle for petroleum products.
GOIL Leads the Way
Leading the charge is GOIL, one of Ghana’s foremost OMCs, which has reduced the price of petrol to GH₵15.45 per litre. This represents a reduction of GH₵0.29 from its previous price two weeks ago.
However, diesel prices remain unchanged, with a litre still selling at GH₵15.45. The decision to maintain diesel prices reflects ongoing cost dynamics, which differ from those influencing petrol.
Other OMCs Likely to Follow
Other OMCs are expected to announce similar adjustments in the coming days, though the exact margins of reduction have not been disclosed. With over 150 OMCs operating nationwide, the competition often encourages widespread price reviews whenever crude oil costs fluctuate.
Global and Local Trends Impacting Prices
Since September 2024, Ghanaian fuel prices have largely been on the rise, driven by increased crude oil prices on the global market. However, a recent decline in international crude prices—dropping from $80 to around $72 per barrel—has provided some relief.
Locally, the cedi’s stability against the US dollar has also played a critical role in influencing fuel prices. The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, highlighted the cedi’s importance in easing costs, stating, “If the cedi maintains its favourable outlook, consumers could see a price reduction of about 5% at the pumps.”
Energy analyst Dr. Yusif Suleman echoed similar sentiments, emphasizing the interconnectedness of exchange rates and fuel pricing in Ghana’s economy.
Cedi Stability Offers Optimism
The Ghanaian cedi has recently experienced one of its most extended periods of stability against the dollar, with the exchange rate at around GH₵15.90 per dollar as of November 19, 2024. This improved performance is attributed to increased dollar supply from the Bank of Ghana and a seasonal slowdown in demand ahead of the Christmas period.
Outlook for Consumers
As GOIL sets the pace, consumers can anticipate further price reductions if the cedi remains stable and global crude prices continue to drop. However, with diesel prices unchanged for now, there is a mixed sentiment among motorists, particularly commercial transport operators who rely heavily on diesel.
The next price adjustment cycle will be closely watched to see how market dynamics evolve, particularly with the cedi’s performance and international crude oil trends in the coming weeks.
Story by : Mercy Addai Turkson
