Story By: Akua Oteng Amponsah
The Africa Sustainable Energy Centre (ASEC) has projected a 5-9% drop in fuel prices across Ghana in the upcoming pricing window, driven primarily by the recent appreciation of the Ghanaian cedi against the US dollar.
According to ASEC, “As petroleum imports are denominated in US dollars, a stronger local currency directly lowers acquisition costs for Ghanaian fuel importers.”
The strengthening of the cedi means importers now require fewer local currency units to purchase the same volumes of petroleum products, which is expected to translate directly into lower pump prices, providing much-needed relief to consumers.
Petrol is expected to sell between GHS 12.00 and GHS 12.60 per litre, while diesel prices are forecast to range from GHS 12.60 to GHS 13.20 per litre, representing a reduction of between 5% and 9% compared to the previous pricing window.
ASEC notes that while global crude oil prices have also seen a decline, from approximately $85 per barrel in January to around $64 currently, the appreciation of the cedi is the more decisive factor in the projected price reduction.
The Energy Think tank anticipates continued stability in global oil markets, with crude prices expected to average between $62 and $65 per barrel for the remainder of the year, “supported by increased production from OPEC+ and reduced global demand, particularly in the US and China, amid ongoing trade tensions.”
However, ASEC warns of broader economic implications, stating that “as an oil-exporting nation, Ghana’s revenues are partially tied to global crude prices. The drop in international oil prices could lead to lower government earnings from upstream petroleum operations, prompting potential production increases to offset revenue losses.”
