The prices of petroleum products are expected to witness one of the biggest drops at the pumps this year, driven by the recent appreciation of the cedi against the US dollar.
According to the latest pricing outlook from the Chamber of Oil Marketing Companies (COMAC) for the first pricing window of June 2025, fuel prices are set to decline significantly beginning June 1.
Projected Fuel Price Reductions
Petrol is expected to drop by between 3.6% and 7.8% per litre from June 1. This means a litre of petrol could be sold at GH¢12.02 or even lower.
Diesel is also expected to fall by 4.2% to 7.8%, with a litre potentially selling for GH¢12.90 or less.
Liquefied Petroleum Gas (LPG) could go for GH¢15 per kilogramme, representing a 6.3% drop, if Oil Marketing Companies (OMCs) adjust their prices accordingly.
Reason for the Price Drop
COMAC attributes the expected reduction in petroleum prices solely to the sustained appreciation of the cedi against the US dollar.
Cedi Performance
In the second half of May 2025, the Ghanaian cedi appreciated significantly, rising from GH¢13.99 to GH¢12.15 per US dollar—an increase of about 13.11%. The cedi’s strong performance on the interbank market has helped strengthen its value against major trading currencies.
Crude Oil Market Outlook
Brent crude prices are recovering after dropping to just over $60 per barrel in April, due to rising US tariffs and increased OPEC+ supply. Improved market sentiment—boosted by the US-UK trade deal and a 90-day accord with China—has helped stabilize prices at around $64 per barrel.
The US Energy Information Administration (EIA) forecasts Brent crude to average $65.85 in 2025, with a projected decline to $59.24 in 2026, as global oil production is expected to outpace demand.
Geopolitical factors such as US sanctions and OPEC+ policies are also expected to influence future crude oil prices.
International Product Price Changes
For the pricing window, crude oil prices rose by 3.92%. In line with this trend:
Petrol prices increased by 2.53%
Diesel went up by 3.07%
LPG rose by 1.35%
Early Response by OMCs
Some Oil Marketing Companies have already begun reducing pump prices ahead of the official June 1 window.
On May 28, 2025, Allied Oil announced a downward review of its prices, selling petrol at GH¢12.15 per litre and diesel at GH¢13.54 per litre.