The National Petroleum Authority (NPA) has projected a significant drop in fuel prices by mid-March 2025, offering much-needed relief to Ghanaian consumers. The anticipated reduction is attributed to falling global crude oil prices and a marginal depreciation of the Ghanaian cedi against the US dollar.
According to the latest Petroleum Price Indicators released on February 28, 2025, crude oil prices have experienced a 2.03% decline, dropping from $75.06 per barrel to $73.53 per barrel. This drop stems from global market uncertainties, including escalating tensions between the United States and Ukraine, new tariffs imposed by Washington, and Iraq’s recent resumption of oil exports from its Kurdistan region.
The NPA’s analysis for the pricing window commencing on March 16, 2025, reveals expected price reductions across major petroleum products:
Petrol: Down by 3.55% (from $709.66/MT to $684.47/MT)
Gasoil (Diesel): Down by 3.47% (from $720.16/MT to $695.19/MT)
LPG: Down by 5.90% (from $609.34/MT to $573.42/MT)
Jet/Kerosene: Down by 3.53% (from $744.18/MT to $717.92/MT)
Fuel Oil: Down by 3.98% (from $485.30/MT to $465.97/MT)
The depreciation of the cedi against the dollar, albeit slight (0.81%), from an exchange rate of 15.5799 to 15.7077, also plays a role in shaping these adjustments.
Positive Impact on Consumers and Businesses
The anticipated decline in fuel prices is a welcome development for households, businesses, and transport operators, all of whom rely heavily on petroleum products. If these trends persist, consumers could enjoy reduced transportation costs, potentially leading to price stabilization in goods and services.
For the average Ghanaian, this relief comes at a critical time amid economic pressures. Lower fuel prices could ease the cost of living and provide some financial respite for businesses grappling with high operational expenses.
Global Market Trends and Outlook
The NPA’s projections align with broader global trends, as oil prices face downward pressure due to geopolitical tensions, shifting trade policies, and fluctuating supply dynamics. Analysts predict that the coming weeks will continue to reflect these trends, reinforcing optimism for further stability in Ghana’s fuel market.
The NPA has assured the public that it will monitor market conditions closely and provide timely updates on petroleum price adjustments. For now, Ghanaians can look forward to a lighter burden at the pump and its ripple effects across the economy.
Story by: Mercy Addai Turkson # ahotoronline.com
