In a welcome relief for consumers, fuel prices are expected to drop by 5-9% in the first pricing window of June, according to a forecast by the Africa Sustainable Energy Centre (ASEC).
The anticipated price reduction is attributed to the recent strengthening of the Ghanaian cedi against the US dollar. Petrol is expected to retail between GHS 12.00 and GHS 12.60 per liter, while diesel will sell for between GHS 12.60 and GHS 13.20 per liter.
“Because petroleum imports are dollar-denominated, a stronger cedi means lower procurement costs for oil marketing companies, which should translate into reduced prices at the pumps,” ASEC stated.
The price drop is expected to ease transportation costs and overall inflation, providing short-term respite for households and businesses.
However, ASEC warned that the decline in global oil prices could put pressure on government revenue, emphasizing the need for the government to ramp up production volumes to offset potential shortfalls.
ASEC has urged the government to strike a balance between consumer relief and long-term strategies for energy security and fiscal resilience.
The think tank projects that global crude oil prices will remain in the $62-$65 per barrel range, driven by higher output from OPEC+ producers and softening demand from major economies.