Fuel prices in Ghana are set to decrease by 2% to 4% for petrol, diesel, and Liquefied Petroleum Gas starting from August 1, 2024. This reduction comes as a result of the slowing down of the depreciation of the Ghana cedi in the latter part of July 2024 and favorable international market conditions.
According to the Institute for Energy Security (IES), there was a 2.99% drop in the price of petrol, a 4.59% decrease in diesel, and a 1.10% reduction in LPG during the second half of July 2024. This positive trend is attributed to the improved performance of the Ghana cedi, which experienced a depreciation rate of 0.52%, the lowest since February 2024.
The global oil market also played a role in the decrease in fuel prices, with Brent crude futures falling below $80 per barrel for the first time post-OPEC+ meeting. This drop was driven by lower global demand, particularly from China, where imports hit a two-year low in July 2024. Brent Crude traded at $78.70 per barrel compared to $83.03 per barrel at the beginning of the pricing window.
On the local fuel market front, oil marketing companies (OMCs) raised the price per liter of petrol by GH¢0.30 and diesel by GH¢0.20 during the second pricing window of July 2024. The national average prices for petrol and diesel in the first pricing window of July 2024 were GH¢14.23 and GH¢14.70 per liter respectively, while LPG was selling at GH¢15.22 per kilogram.
Overall, the IES predicts a further drop in fuel prices in the coming days due to the positive developments in the foreign fuel market and the stabilized depreciation of the Ghana cedi in the domestic forex market. This news will come as a relief to consumers who have been grappling with high fuel prices in recent times.
