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Consumers in Ghana are facing an uncertain outlook at the fuel pumps as global oil prices continue to decline, but the weakening of the local currency threatens to counteract any potential relief.
Despite a steady drop in global fuel prices, the depreciation of the Ghanaian cedi against the U.S. dollar is keeping fuel prices volatile.
In its first pricing window of February 2025, the Institute for Energy Security (IES) reported that fuel prices in Ghana rose for the third time this year. Gasoil saw an increase of GH₵0.45 per litre, while gasoline prices surged by GH₵0.24 per litre, pushing the national average price for gasoline to GH₵15.61 and for gasoil to GH₵15.65. Liquefied Petroleum Gas (LPG) also remained costly, with a price of GH₵18.79 per kilogram.
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This price increase comes even as global fuel prices are on the decline. Brent crude, the global benchmark, fell by 5.65% during the same pricing window, closing at $74.74 per barrel. Refined petroleum products saw similar reductions: gasoil dropped by 4.50%, gasoline by 1.26%, and LPG by 0.22%.
While such declines typically lead to lower fuel prices in countries like Ghana, the situation is complicated by the Ghanaian cedi’s 2.18% depreciation against the U.S. dollar during the same period. This currency weakness has kept fuel prices higher than they otherwise would be, limiting the potential benefits of global price reductions.
The IES has predicted that the second pricing window for February 2025 will bring mixed reactions from consumers and businesses alike. While it is possible that global price trends could result in lower fuel prices, the cedi’s ongoing depreciation is expected to limit the extent of any price reductions.
For now, consumers are left navigating the volatile fuel pricing landscape, with some seeking the most affordable options from distributors like Benab, Star Oil, and Zen Petroleum, who have been identified as offering lower prices compared to others in the market.
LPG prices, however, are expected to remain stable, with little to no change anticipated in the coming weeks.
As Ghanaian motorists and households continue to face fuel price challenges, the future remains uncertain. With the cedi’s depreciation still a key factor in determining fuel prices, any relief at the pumps may remain elusive for the time being.
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