Prices of petroleum products across Ghana are expected to record a marginal decline at the pumps starting today, December 16, offering slight relief to consumers during the festive season.

The expected reduction is contained in the latest pricing outlook report released by the Chamber of Oil Marketing Companies (COMAC), which guides pricing decisions by oil marketing companies nationwide. The report, sighted by JoyBusiness, attributes the anticipated drop largely to declining prices of finished petroleum products on the international market.

Petrol, Diesel and LPG Prices to Fall

According to COMAC’s projections:

• Petrol prices are expected to reduce by between 1.64% and 3.89%, bringing the average pump price to approximately GH¢12.90 per litre.
• Diesel is projected to decline by as much as 4.59%, with a litre expected to sell around GH¢13.20.
• Liquefied Petroleum Gas (LPG) is also expected to record a reduction of up to 2.16%, resulting in an average price of about GH¢14.00 per kilogram.

Global Oversupply Drives Price Declines

COMAC explained that the anticipated price reductions are mainly driven by falling prices of finished petroleum products on the global market, despite a marginal increase in crude oil prices during the review period.

The report noted that global oversupply conditions led to significant price drops in refined products, with:

• Petrol prices declining by 6.5%,
• Diesel prices falling sharply by 11.67%, and
• LPG prices easing by 0.22%.

Cedi Depreciation Limits Further Gains

However, the chamber highlighted that gains from the international market were partly offset by the depreciation of the Ghana cedi, which weakened slightly from GH¢11.14 to GH¢11.43 against the US dollar over the period under review.

COMAC added that limited foreign exchange support constrained stronger appreciation of the cedi, preventing deeper fuel price reductions that could have been passed on to consumers.

Analysts Call for Stronger Cedi Stabilisation

Some market analysts who spoke to JoyBusiness argued that government intervention to stabilise the cedi remains critical to sustaining the current price relief at the pumps. Others noted that without the recent pressure on the local currency, Ghana could have experienced steeper fuel price cuts in the second pricing window.

Nonetheless, the projected reductions are expected to provide modest relief to households and businesses, particularly as demand rises during the festive season.