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

The Chamber of Petroleum Consumers (COPEC) is projecting a slight decrease in fuel prices from the second pricing window of January 16th.

Petrol prices are expected to decline by approximately 3%, while diesel prices are projected to decrease by around 1%.

This forecast is contingent on the performance of the Ghanaian Cedi against major currencies. In the first pricing window of January 2025, fuel prices saw a slight increase, with Oil Marketing Companies (OMCs) like GOIL and Total adjusting prices upward.

Executive Secretary of COPEC, Duncan Amoah, stated that the performance of the Cedi will play a crucial role in determining the final fuel prices.

“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 positive outlook follows the successful first forward auction of the year by the Bank of Ghana (BoG) on January 14.

The auction, which allocated $20 million to Bulk Oil Distribution Companies (BDCs), aimed to manage foreign exchange reserves and stabilize the exchange rate.

Duncan Amoah, however, emphasized the need for a more substantial approach to address the foreign exchange demands of BDCs for petroleum product imports. He stressed that the current allocation of $20 million per auction is insufficient to significantly impact 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.

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