Ghana Cedi Appreciation Spurs Relief at the Pump
The Ghana cedi appreciation is bringing welcome relief to motorists and households across the country, as fuel price in Ghana drop significantly at pumps nationwide. According to the Chamber of Oil Marketing Companies (COMAC), this price reduction, effective from May 16, 2025, is driven by the cedi’s rapid gain against the U.S. dollar and a global decline in crude oil prices.
From May 1 to May 15, the Ghana cedi appreciated by a remarkable 12.8%, moving from GH₵14.27 to GH₵12.45 per U.S. dollar. This surge in strength has drastically reduced the cost of importing petroleum products into the country, hence the drop in fuel price in Ghana.
Ghana Cedi Appreciation and Fuel Price Changes
COMAC, in its latest market analysis, projected sharp price drops for the second pricing window of May 2025. The breakdown is as follows:
- Petrol: decreased by 6.7% to 8.8%
- Diesel: reduced by 4% to 6%
- LPG: dropped by 5.3% to 10%
These reductions are a direct outcome of the Ghana cedi appreciation, which has lowered import bills and allowed oil marketing companies (OMCs) to pass savings on to consumers.
New Fuel Prices by Leading OMCs
Major players in Ghana’s fuel retail market have already implemented new rates aligned with COMAC’s projections:
- GOIL: Petrol – GH₵13.32/litre | Diesel – GH₵13.91/litre | Premium – GH₵15.19/litre
- Zen Petroleum: Petrol – GH₵12.67/litre | Diesel – GH₵13.85/litre
- Frimps Oil: Petrol – GH₵13.05/litre | Diesel – GH₵14.05/litre
These adjusted prices reflect both the appreciation of the Ghana cedi and the decline in international crude benchmarks, creating the most favourable fuel market conditions in months.
Forex Stability: The Fuel Price Game-Changer
Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies, emphasized that foreign exchange rates remain the most significant driver of petroleum pricing in Ghana.
“One of the biggest components in the price derivation of crude oil products in Ghana is the forex rate. As the cedi strengthens and global benchmark prices fall, we’re seeing petroleum product prices come down significantly,” he explained.
Dr. Oppong further noted that if the current Ghana cedi appreciation trend continues, petrol prices could drop to GH₵12 per litre in the first pricing window of June.
COPEC Confirms Ongoing Reductions
Echoing COMAC’s outlook, the Chamber of Petroleum Consumers (COPEC) confirmed that the current pricing window marks the fifth consecutive round of fuel price reductions. According to Duncan Amoah, Executive Secretary of COPEC, the reductions are as follows:
- Petrol: –0.34%
- LPG: –2.70%
- Diesel: –3.54%
He credited the Ghana cedi appreciation and international market stability for driving down costs sustainably.
Economic Reforms Fueling Cedi Strength
Market analysts attribute the recent Ghana cedi appreciation to a combination of macroeconomic reforms and policy discipline. In a significant vote of confidence, S&P Global Ratings upgraded Ghana’s credit rating to “CCC+”, with a stable outlook. This development has encouraged greater investor trust and foreign capital inflows, boosting the cedi’s value.
The strengthened cedi has made petroleum product imports less expensive, creating a ripple effect of price relief throughout the energy sector.
Prices Down, But Goods May Lag
Despite the noticeable reduction in fuel prices, some economists caution that broader market prices for goods and services may not adjust immediately. Professor John Gatsi, Dean of the University of Cape Coast School of Business, explained:
“Most businesses are still selling old stock acquired when the exchange rate was higher. This means price reductions in the broader market will take time.”
Nonetheless, the sustained Ghana cedi appreciation is expected to influence future stock purchases, which should eventually lead to lower retail prices for consumers.
Outlook: More Cuts Possible in June
Looking ahead, COMAC and other energy stakeholders remain optimistic. If the current momentum of Ghana cedi appreciation holds, Ghanaian consumers could enjoy even lower fuel costs in the upcoming pricing window in early June.
Motorists are encouraged to monitor fuel price changes and take advantage of the declining rates. The government and economic analysts are hopeful that this trend will continue, supporting broader efforts to stabilize the economy and ease cost-of-living pressures.
Conclusion
The recent Ghana cedi appreciation has ushered in meaningful changes in Ghana’s fuel pricing landscape. With pump prices dropping across the board and expectations for further reductions, consumers have good reason to be hopeful. However, stakeholders emphasize that continued economic discipline and forex stability are key to sustaining this positive trend.
