Fuel prices in Ghana are expected to ease from the next pricing window despite falling global crude oil prices, as the country’s pricing system delays the impact on consumers.
Earlier this year, motorists enjoyed lower fuel prices, with petrol selling for about GH¢10 per litre and diesel between GH¢11 and GH¢12, when crude oil traded between $60 and $70 per barrel. However, escalating tensions involving Iran, Israel and the United States pushed crude prices close to $120 per barrel, causing diesel prices in Ghana to rise above GH¢17 per litre.
Although global oil prices have now dropped to around $72 per barrel following a ceasefire and easing geopolitical tensions, local pump prices have remained unchanged.
The delay is due to Ghana’s fuel pricing mechanism, managed by the National Petroleum Authority (NPA), which reviews prices every two weeks. Oil Marketing Companies must maintain the approved price floor throughout each pricing window, even if international oil prices decline.
The current pricing cycle ends on June 30, after which the NPA will assess global crude prices, exchange rates and other cost factors before announcing new price guidelines.
Another factor slowing price reductions is existing fuel inventory, as many companies are still selling stock purchased when crude prices were higher.
With marketers now importing fuel at lower costs and the cedi remaining relatively strong, consumers are expected to benefit from lower pump prices beginning with the next pricing cycle in early July.
