Consumers are breathing a sigh of relief as Oil Marketing Companies (OMCs) across the country have reduced fuel prices at the pumps.
The reduction follows a relative stability in the exchange rate of the cedi against major trading currencies, especially the US dollar, which is one of the key determinants of fuel pricing in the country’s deregulated petroleum market.
The latest adjustments, which took effect at the start of the month, see petrol now selling at GH¢11.77 per litre at Star Oil, with diesel also seeing a drop from GH¢13.99 to GH¢12.49.
GOIL has reduced a litre of petrol from GH¢13.27 to GH¢12.52. Diesel is now selling at GH¢12.98 from its old price of GH¢13.27, whilst Allied Oil is selling a litre of petrol at GH¢12.15. It is also selling a litre of diesel at GH¢13.35.
Some other OMCs have already adjusted their prices, with the rests expected to follow suit in the coming days.
Industry experts have raised concerns about the margin of reduction by the OMCs.
the Chamber of Oil Marketing Companies, in its Price Outlook Report, attributed the reduction to the cedi’s appreciation.
This is because prices of crude oil and finished petroleum products have been going up, albeit marginally, on the international market.
According to the Chamber, in the second half of May 2025, the Ghanaian cedi appreciated significantly against the US dollar, strengthening from GH¢13.99 to GH¢12.15, a gain of approximately 13.11%.
The cedi has continued its impressive run on the interbank market, registering substantial gains against major trading currencies, particularly the US dollar.
The Chamber maintained that Brent crude price is recovering after dropping to just over $60 per barrel in April 2024 due to the rising U.S. tariffs and increased OPEC+ supply.
The improved market sentiment, driven by the U.S.-UK trade deal and a 90-day accord with China, has also helped stabilise prices around $64 per barrel.
Looking ahead, the EIA forecasts Brent crude could average $65.85 in 2025 and decline to $59.24 in 2026, as global oil production is expected to outpace demand.