Ghanaians can look forward to a reduction in the prices of petrol, diesel, and Liquefied Petroleum Gas (LPG) beginning Thursday, 1 August 2024.

The prices of petrol, diesel and LPG is anticipated to drop between 2 per cent to 4 per cent.

The decrease is attributed to a slowdown in the depreciation of the Ghana cedi in the latter half of July 2024 and favourable international market conditions.

The Institute for Energy Security (IES) has reported notable price reductions in the second half of July 2024: petrol by 2.99 per cent, diesel by 4.59 per cent, and LPG by 1.10 per cent.

“Precisely, the price of gasoline [petrol] fell by 2.99 per cent, gasoil [diesel] by 4.59 per cent, and LPG by 1.10 per cent in the second half of July 2024. The Ghana cedi also recorded slowed depreciation (0.52 per cent), the lowest since February 2024," the IES stated.

Looking ahead, the IES projects further declines in fuel prices, highlighting “the positive realised on the foreign fuel market coupled with the slowed depreciation of Ghana Cedi recorded on the domestic forex market.”

Global Oil Market Trends

The second pricing window for July 2024 witnessed Brent crude futures falling below USD80 per barrel for the first time since the post-OPEC+ meeting. This drop was driven by disappointing global demand, with Chinese imports in July 2024 hitting their lowest level in two years. Brent crude traded at USD78.70 per barrel compared to USD83.03 per barrel at the start of the pricing window.

Local Fuel Market Performance

In contrast to global trends, the second pricing window for July 2024 saw a rise in the prices of liquid fuels at local pumps. Oil Marketing Companies (OMCs) increased the price per litre of petrol by GH¢0.30 and diesel by GHS0.20.

According to IES's computation of the national average price for the three refined petroleum products for the first pricing window of July 2024, petrol and diesel were selling at GHS14.23 and GHS14.70 per litre respectively, while LPG was priced at GHS15.22 per kilogramme.