Ghana: Diesel Prices Expected To Rise, Petrol And LPG Prices To Fall

Motorists in Ghana are expected to face a 1.39% increase in diesel prices in the second pricing window of August, while petrol and liquefied petroleum gas (LPG) prices are projected to decline by 2.90% and 0.93%, respectively, the Chamber of Oil Marketing Companies (COMAC) said.

The mixed outlook reflects uncertainty surrounding the U.S.-Iran dispute and higher international crude oil prices.

COMAC said a recent 2-cedi reduction in the regulatory margin on diesel should continue to cushion consumers from the full impact of higher pump prices.

The chamber also said the recent appreciation of the cedi could provide further relief in coming pricing windows if the trend is sustained.

Average crude oil prices rose 2.02% to $90.41 a barrel in mid-August, driven by geopolitical risks and potential supply disruptions around the Strait of Hormuz, COMAC said.

Refined petroleum products recorded mixed movements, with diesel prices rising 2.86%, while petrol and LPG prices fell 5.46% and 2.54%, respectively.

Diesel prices came under renewed pressure following another Ukrainian attack on a Russian refinery and a Houthi attack on a Saudi Arabian refining facility, COMAC said.

The cedi depreciated 1.20% to 11.80 cedis per dollar between July 27 and Aug. 11, based on bank averages, COMAC said.

The currency has since strengthened, with the Bank of Ghana’s rate at 10.98 cedis per dollar on Aug. 14.

COMAC expects further appreciation if current foreign exchange supply conditions persist, which could help lower the local cost of imported petroleum products in subsequent pricing windows.

The latest outlook is broadly consistent with the National Petroleum Authority’s price floors for the second pricing window of August.

The petrol price floor has been reduced by 0.61 cedi per litre to 13.92 cedis from 14.53 cedis, while the LPG price floor has fallen by 0.08 cedi per kilogram to 10.98 cedis from 11.06 cedis.

Diesel, however, has moved in the opposite direction, with its price floor rising by 0.22 cedi per litre to 15.19 cedis from 14.97 cedis.

The changes could provide some relief for petrol and LPG consumers, while diesel users may continue to face higher operating and transport costs.