Motorists across the country are expected to enjoy modest relief at the fuel pumps beginning today, December 16, as prices of major petroleum products are projected to decline slightly. This outlook is contained in the most recent pricing forecast issued by the Chamber of Oil Marketing Companies (COMAC), a key industry body whose periodic reports guide pump price adjustments by oil marketing companies.
The report suggests that the reduction will apply to petrol, diesel, and Liquefied Petroleum Gas (LPG), reflecting changing dynamics on the international petroleum market.
Expected Price Adjustments
According to COMAC’s projections, the price of petrol is anticipated to fall by between 1.64 percent and 3.89 percent. If fully reflected at the pumps, this could bring the average price per litre to approximately GH¢12.90.
Diesel is forecast to record a steeper reduction, with prices expected to decline by as much as 4.59 percent. This adjustment would see diesel selling at around GH¢13.20 per litre.
Consumers of LPG are also expected to benefit from the downward trend. Prices are projected to fall by up to 2.16 percent, translating into an estimated retail price of about GH¢14.00 per kilogram.
What Is Driving the Decline?
COMAC attributes the anticipated reductions largely to developments on the global petroleum market. The report notes that prices of finished petroleum products on the international market have declined over the pricing period, driven mainly by excess supply.
Although crude oil prices recorded a marginal increase during the period under review, refined petroleum products moved in the opposite direction. Petrol prices on the global market fell by 6.5 percent, diesel recorded a sharp drop of 11.67 percent, while LPG prices eased slightly by 0.22 percent.
These global price movements have helped offset domestic cost pressures, particularly those linked to currency fluctuations.
Currency Pressures and Seasonal Factors
Despite the positive international pricing trends, the local currency provided limited support to further price reductions. The Ghana cedi depreciated marginally during the period, weakening from GH¢11.14 to GH¢11.43 against the US dollar. COMAC explained that constrained foreign exchange inflows prevented the cedi from appreciating more strongly.
The Chamber also pointed to seasonal factors, noting that the price moderation aligns with festive-season expectations, when demand patterns and market pressures often influence pricing decisions.
Analysts Urge Currency Stabilization
Some market analysts welcomed the anticipated reduction but cautioned that the relief may be short-lived if currency pressures persist. They argued that sustained stability of the cedi is critical to maintaining or deepening fuel price reductions in the coming months.
Others observed that, in the absence of recent depreciation pressures on the local currency, consumers could have benefited from even sharper fuel price cuts during the second pricing window of the month.
Story by Freedom Lavoe/ahotoronline.com