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Some Oil Marketing Companies (OMCs) in Ghana have started reducing the prices of petroleum products, aligning with expected adjustments at the pumps.
Leading this initiative, Star Oil has lowered the price of a litre of petrol to ₵13.65 from its previous ₵13.93, marking a ₵0.28 drop, or 2.01 percent decrease. Diesel prices have decreased by more than 3.17 percent, now selling at ₵14.02, which is ₵0.46 less per litre.
According to JOYBUSINESS, other OMCs are likely to follow suit with similar price adjustments.
IES Forecast
The Institute for Energy Security (IES) had earlier predicted a decrease in petroleum product prices ranging between 2% and 4% for petrol, diesel, and Liquefied Petroleum Gas (LPG) starting August 1, 2024. This forecast was based on the slowdown in the depreciation of the Ghana cedi during the latter half of July 2024 and favorable international market dynamics.
IES reported that in the second half of July 2024, petrol prices fell by 2.99%, diesel by 4.59%, and LPG by 1.10%. The Ghana cedi’s depreciation rate also slowed to 0.52%, the lowest since February 2024.
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World Oil Market
In the second pricing window of July 2024, for the first time since the post-OPEC+ meeting, Brent crude futures dropped below $80 per barrel, driven by disappointing global demand and the lowest level of Chinese imports in two years. Brent crude traded at $78.70 per barrel, down from $83.03 per barrel at the start of the pricing window.
Local Fuel Market Performance
During the second pricing window for July 2024, the price of liquid fuels rose at local pumps. Oil Marketing Companies (OMCs) had increased the price per litre of petrol by GH¢0.30 and gasoil by GH¢0.20. The IES computed the national average prices for the three refined petroleum products for the first pricing window of July 2024, with petrol and diesel selling at GH¢14.23 and GH¢14.70 per litre respectively, and LPG at GH¢15.22 per kilogramme.
The current adjustments by OMCs like Star Oil are reflective of these trends, aiming to pass on the benefits of slowed cedi depreciation and favorable international oil market dynamics to consumers.
