Fuel Prices to Fall Sharply Across Ghana From July 1 – COPEC

Consumers and businesses across the country can expect much-needed relief at the pumps starting Wednesday, July 1, as the Chamber of Petroleum Consumers (COPEC) projects a significant decline in the retail prices of petroleum products.

The expected reduction is driven by a double win for the local market: a steep drop in global crude oil prices and the continued appreciation of the Ghanaian cedi against the US dollar during the current pricing window.

The Drivers Behind the Fuel Price Drop

According to data released by the energy think tank, international market trends have turned heavily in favor of consumers. Key indicators fueling the price drop include:

• Global Crude Prices: A substantial 19.69% drop in international crude benchmarks, falling from $97.32 per barrel to $78.16 per barrel.
• Cedi Performance: A steady 3.14% appreciation of the Ghana cedi against the US dollar within the current window, lowering landing costs.
• Refinery Support: COPEC commended the government’s policy of allocating a portion of its crude oil share from the Jubilee Field to support local refineries, highlighting that it reduces refined import pressures and bolsters long-term market stability.

Projected Pump Prices for July 1

The drop will affect both petrol and diesel consumers uniquely, with diesel users seeing the sharpest decrease. Individual Oil Marketing Companies (OMCs) will adjust rates based on their specific pricing strategies within COPEC’s projected windows.

Petrol Pricing Breakdowns

With international Free-on-Board (FOB) prices declining by 6.92%, the projected national metrics look as follows:

• Current Mean Price: GH¢14.24 per litre
• Projected Average Price: GH¢13.36 per litre (A 6.21% average reduction)
• Expected Retail Range: GH¢12.69 to GH¢14.03 per litre

Diesel Pricing Breakdowns

Diesel is recording an even steeper decline due to a massive 15.18% drop in international FOB costs:

• Current Mean Price: GH¢16.26 per litre
• Projected Average Price: GH¢14.10 per litre (A 13.28% average reduction)
• Expected Retail Range: GH¢13.39 to GH¢14.80 per litre

Liquefied Petroleum Gas (LPG)

Driven down by a 15.96% dip in global FOB prices, LPG is estimated to market between GH¢9.54 and GH¢10.55 per kilogram.

NPA Establishes New July Price Floors

Aligning with these projections, the National Petroleum Authority (NPA) has revised its mandatory price floors downward for the first pricing window of July. These figures represent the legal minimum limit at which OMCs and LPG Marketing Companies (LPGMCs) are permitted to sell products:

COPEC’s Charge to OMCs: The Chamber is strongly urging all Oil Marketing Companies to pass on these favorable market gains directly to households and businesses without delay.

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