Fuel Prices to Drop from May 16: COMAC Attributes Reduction to Cedi Strength and Global Oil Trends

The Chamber of Oil Marketing Companies (COMAC) has announced that fuel prices in Ghana will decrease starting Friday, May 16, 2025. The anticipated reductions are as follows: petrol by 0.34%, liquefied petroleum gas (LPG) by 2.70%, and diesel by 3.45%. These adjustments are attributed to the Ghanaian cedi’s appreciation and declining global oil prices.

Drivers of the Price Reduction

Dr. Riverson Oppong, CEO of COMAC, explained that the cedi’s recent gains against major currencies have significantly influenced the pricing of petroleum products. “One of the biggest components in the price derivation of crude oil products in Ghana has to do with the forex,” he noted.

Additionally, global benchmark prices for refined petroleum products have been on a downward trend, contributing to the expected decrease in local fuel prices. “As we speak now, the benchmark prices are falling as well, and the U.S. dollar is weakening. That’s why you’ve seen petroleum product prices coming down,” Dr. Oppong added.

Implications for Consumers

The reduction in fuel prices is expected to provide relief to consumers, particularly in the transportation and logistics sectors. Lower fuel costs can lead to decreased operational expenses, potentially resulting in reduced prices for goods and services.

However, despite these positive developments, Ghana’s position in Africa’s fuel price rankings has declined. According to GlobalPetrolPrices.com, Ghana now ranks 20th in Africa for the lowest petrol prices, down from 13th in April 2024. This drop suggests that while prices are decreasing, other countries are experiencing more significant reductions.

COMAC remains optimistic that if the cedi continues to strengthen and global oil prices remain low, further reductions in fuel prices could occur. Dr. Oppong emphasized the importance of these factors in determining future price adjustments, stating, “As long as these two components continue to decline, I believe that ordinary Ghanaians will benefit from it in every possible way.”

Also Read: Finance Minister Ato Forson Urges Traders to Lower Prices Amid Cedi Stability