Fuel prices expected to go down by 3% from January 16 – COPEC

It is anticipated that the price of diesel will drop by about 1% and that the price of gasoline would drop by about 3%.

The Ghanaian Cedi’s performance in relation to other major currencies will determine this prediction. Oil Marketing Companies (OMCs) such as GOIL and Total raised fuel prices somewhat during the first pricing window in January 2025.

The Cedi’s performance will be a major factor in deciding the ultimate fuel pricing, according to Duncan Amoah, Executive Secretary of COPEC.

“Indications are that prices of petroleum products could go down between 1% and 3% for petrol and diesel. LPG could go up some 3%. However this will be subject to availability of the product and then again the cedi’s performance over the period. Some markets are quoting an upward inclination for the cedi while for others, there is still a depreciation and so the cedi will play a role. But the international market benchmarks are pointing to a reduction,” he told Citi Business News.

This optimistic prognosis comes after the Bank of Ghana’s (BoG) January 14 successful first forward auction of the year.

The goal of the auction, which gave $20 million to Bulk Oil Distribution Companies (BDCs), was to stabilize the currency rate and manage foreign exchange reserves.

However, Duncan Amoah underlined that a more comprehensive strategy is required to meet the foreign exchange requirements of BDCs for the import of petroleum products. He emphasized that the $20 million allotted for each auction is not enough to have a major effect on the exchange rate.

“What you require currently is between $400-500 if the market is going for imports for petroleum products. You cannot have a situation where the Bank of Ghana throws in just abit – some $50-100 and expect that that will be enough to drive the cedi’s rate of appreciation or depreciation so the must be a more sustainable programme,” he stated in a report by 3news.com.