Fuel prices in Ghana have decreased for the second consecutive pricing window, bringing some relief to the motoring and general public. Several Oil Marketing Companies (OMCs) have begun reducing prices at the pumps. Market leader GOIL is now selling petrol at ₵14.22 per litre, a 1.38% drop from the price two weeks ago. Diesel has also decreased by ₵0.9 per litre, now selling at ₵14.90 per litre.
Two main factors contribute to this price reduction: the cedi’s stability, which has shown some gains against the US dollar in August, and a decline in crude oil prices on the international market. Brent crude oil fell by 0.4% to $80.69 per barrel, while West Texas Intermediate (WTI) dropped by 0.5% to $77.84 per barrel.
The fall in oil prices at the global stage, is linked to ongoing geopolitical tensions affecting global supply and demand, despite positive demand expectations in the U.S. The market’s volatility was influenced by uncertainties surrounding the Middle East conflict, with crude prices declining further as cease-fire and prisoner swap negotiations began between Israel and Hamas. The potential for interest rate changes by the U.S. Federal Reserve and geopolitical risks, such as the assassination of a Hamas leader in Iran, added to the market’s fluctuations.
The reduction in fuel prices in Ghana is expected to complement the impact of the harvest season, likely driving down the prices of goods and easing the cost of living. However, ongoing drought conditions in northern Ghana may limit the duration of these price reductions.
With the decrease in fuel prices during the first and second pricing windows of August, inflation is expected to continue its downward trend. This could prompt the Monetary Policy Committee of the Bank of Ghana to consider lowering the policy rate for the first time in several months.
