Oil prices drop globally, but cedi depreciation keeps fuel costs high -

The local fuel market experienced another round of price hikes in the first pricing window of February 2025, marking the third consecutive increase since the start of the year.

Despite a steady drop in Brent crude prices and refined petroleum product costs on the international market, the Ghanaian Cedi’s 2.18% fall against the U.S. Dollar is keeping fuel prices volatile.

According to a press release by the Institute for Energy Security (IES), prices per litre rose by GH₵0.45 for Gasoil while Gasoline increased by GH₵0.24 per litre, pushing national average prices to GH₵15.61 for Gasoline and GH₵15.65 for Gasoil.

Liquefied Petroleum Gas (LPG) also remained expensive at GH₵18.79 per kilogram. Consumers have been left seeking the most affordable options, with Benab, Star Oil, and Zen Petroleum identified as offering the lowest prices.

Globally, Brent crude dropped by 5.65% during the pricing period, closing at $74.74 per barrel. Prices for refined products followed suit, with Gasoil falling by 4.50%, Gasoline by 1.26%, and LPG by 0.22%.

While such declines typically translate to lower fuel prices locally, Ghana’s worsening exchange rate threatens to erode these benefits, the Institute said.

With the second pricing window of February approaching, the Institute for Energy Security (IES) predicts mixed reactions in the market.

While a decrease in liquid fuel prices is possible due to global trends, the depreciation of the Cedi may limit the full impact.

Meanwhile, LPG prices are expected to remain unchanged. For Ghanaian motorists and households, relief at the pumps remains uncertain as currency instability continues to influence fuel pricing.

Click here to read the release IES_FEB_2025_SECOND_PRICING_WINDOW_PROJECTION

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