Global oil prices have taken a sharp dip following OPEC+’s decision to accelerate production increases, raising questions about possible effects on fuel prices in Ghana.
Brent crude, the global benchmark, dropped by over $2 to around $59.25 per barrel in early Asian trading on Monday, while U.S. West Texas Intermediate (WTI) fell to $56.19 per barrel. This marks one of the steepest declines in recent months and places WTI at its lowest level since February 2021. The drop follows OPEC+’s announcement to raise production by 411,000 barrels per day in June, the second straight monthly output increase. In total, the alliance has added 960,000 barrels per day from April through June.
The global price slump comes at a time when Ghana’s currency has been gaining strength. As of early May 2025, the Ghanaian cedi is trading at around GH₵14.55 per US dollar on the interbank market, up from GH₵16.53 in November 2024, an 11% appreciation. The gain is linked to strong remittances, increased gold and cocoa export earnings, and the Bank of Ghana’s foreign exchange reforms.
So what does this dual development, falling global oil prices and a stronger cedi — mean for fuel prices at the local pumps?
Fuel prices in Ghana are influenced primarily by international oil prices and the strength of the local currency against the dollar. When global prices drop and the cedi strengthens simultaneously, the conditions are typically favorable for lower pump prices. However, adjustments also depend on other variables, such as taxes, margins by oil marketing companies, and price windows benchmark set by the National Petroleum Authority (NPA).
Market watchers may be keeping a close eye on the next pricing window to see whether these global and domestic factors align to offer motorists some relief.
