Fuel prices set for sharp drop from July 1 as petrol, diesel and LPG get cheaper

Consumers across Ghana are expected to enjoy lower fuel prices from Wednesday, July 1, 2026, following a sharp decline in global crude oil prices and the continued appreciation of the Ghana cedi against the US dollar.

The projected reduction, announced by the Chamber of Petroleum Consumers (COPEC), is expected to affect all major petroleum products, including petrol, diesel and liquefied petroleum gas (LPG), offering relief to households, businesses and the transport sector.

In a statement signed by its Executive Secretary, Duncan Amoah, COPEC said developments on the international oil market, coupled with the strengthening of the local currency, have created favourable conditions for a substantial reduction in pump prices during the first pricing window of July.

According to COPEC, benchmark crude oil prices have fallen significantly over the current pricing period.

The organisation noted that crude oil prices dropped from US$97.32 per barrel to US$78.16 per barrel, representing a decline of approximately 19.69 percent.

The sharp reduction follows easing geopolitical tensions in the Middle East and improved confidence in global oil supply, developments that have contributed to downward pressure on international petroleum prices.

COPEC explained that because Ghana imports refined petroleum products, movements in international crude and refined product prices have a direct impact on local fuel prices.

In addition to the decline in crude oil prices, the Ghana cedi has recorded a modest appreciation against the US dollar during the current pricing window.

According to COPEC, the average interbank exchange rate improved from US$1 to GH¢11.8035 to US$1 to GH¢11.4333, representing an appreciation of approximately 3.14 percent.

The stronger local currency reduces the cost of importing petroleum products, providing additional room for oil marketing companies to lower pump prices.

COPEC projects that petrol prices will decline by about 6.21 percent in the first pricing window of July.

The Free-on-Board (FOB) price of petrol dropped from US$988.77 per metric tonne to US$920.34 per metric tonne, representing a 6.92 percent reduction.

Based on current market conditions, the organisation estimates that petrol will retail at an average of GH¢13.36 per litre, down from the current average price of GH¢14.24 per litre.

Depending on the pricing strategies of individual Oil Marketing Companies (OMCs), petrol is expected to sell between GH¢12.69 and GH¢14.03 per litre.

Diesel users are likely to benefit from the largest reduction among the three major petroleum products.

According to COPEC, the FOB price of diesel declined sharply from US$1,056.38 per metric tonne to US$896.02 per metric tonne, representing a 15.18 percent decrease.

Taking into account the appreciation of the cedi, the projected average retail price of diesel is expected to fall to GH¢14.10 per litre, compared with the current average of GH¢16.26 per litre.

This represents an estimated 13.28 percent reduction.

COPEC expects diesel prices at the pumps to range between GH¢13.39 and GH¢14.80 per litre, depending on the pricing decisions of individual marketers.

Consumers who rely on liquefied petroleum gas for cooking and commercial activities are also expected to benefit from lower prices.

The FOB price of LPG dropped from US$652.65 per metric tonne to US$548.50 per metric tonne, representing a 15.96 percent decline.

Combined with the cedi's appreciation, COPEC estimates that LPG will retail at an average price of GH¢10.05 per kilogram, with expected pump prices ranging between GH¢9.54 and GH¢10.55 per kilogram.

The anticipated reduction is expected to ease transportation costs and lower operating expenses for businesses that rely heavily on fuel.

Lower fuel prices could also help moderate inflationary pressures by reducing distribution and logistics costs across various sectors of the economy.

Industry observers say the latest development is particularly welcome at a time when households continue to face the high cost of living despite recent improvements in Ghana's macroeconomic indicators.

COPEC also commended the government for allocating part of Ghana's share of crude oil from the Jubilee Fields to support domestic refining operations.

According to the organisation, increasing crude supply to local refineries has the potential to reduce dependence on imported refined petroleum products, lower foreign exchange demand and further strengthen the cedi over time.

The Chamber expressed optimism that Oil Marketing Companies would respond quickly to prevailing market conditions by passing the reductions on to consumers without delay.

It urged industry players to ensure that the benefits of falling international oil prices and the stronger cedi are fully reflected at the pumps to provide meaningful relief for Ghanaians during the new pricing window.