Ghanaians can expect a reduction in fuel prices at the pumps starting Friday, May 16, 2025, following an appreciation of the cedi and declining international petroleum prices. This has been confirmed by the Chamber of Oil Marketing Companies (COMAC).
According to Dr. Riverson Oppong, Chief Executive of COMAC, the drop in fuel prices is largely driven by the recent gains of the Ghana cedi and a fall in the cost of finished petroleum products on the global market.
“One of the biggest components in the price derivation of crude oil product prices in Ghana has to do with the forex,” he told Joy Business.
Dr. Oppong explained that a stable exchange rate is a strong indicator of pump price reductions. He added that the current situation is being helped by a weakening U.S. dollar and falling crude oil prices internationally.
“As we speak now, the benchmark prices are falling as well, and the U.S. is falling. That’s why you’ve seen petroleum product prices coming down. From 15% to 13% today, on average,” he said.
He expressed optimism that the trend will continue if the market conditions remain favorable.
“Indeed, we expect this to continue. As far as these two components play their roles, plummeting down or taking a nosedive, I believe that ordinary Ghanaians or you and I will need to benefit from it in all angles,” he added.
The local currency has seen impressive gains recently, strengthening by 6.25% against the U.S. dollar in the retail market over the past week, bringing its year-to-date appreciation to 16.29%. It closed the week trading at a mid-rate of GH¢13.60 to the dollar. The cedi also gained 7.61% against the pound and 5.81% versus the euro.
On the interbank market, it traded at GH¢12.89 to the dollar, supported by an aggregate market supply of US$378.6 million, helping to keep the market liquid.
Adding to the positive outlook, global ratings agency S&P Global Ratings recently upgraded Ghana’s long- and short-term foreign currency credit ratings to ‘CCC+/C’ from “Selective Default.” The country’s local currency ratings were also affirmed at ‘CCC+/C’, with a stable outlook across both ratings.
The upgrade was attributed to Ghana’s economic growth, ongoing fiscal reforms, and improved external position. S&P also noted Ghana’s improving public financial management, particularly during election cycles.
Market analysts believe the upgrade will help support the cedi’s performance in the near term, with expectations for continued currency stability and relief at the fuel pumps.
