Fuel prices to dip slightly as LPG set for sharp increase – COMAC

The Chamber of Oil Marketing Companies (COMAC) has projected a slight drop in petrol and diesel prices at the pumps in the first pricing window of May, while LPG is expected to record a significant increase. According to COMAC’s latest outlook, petrol prices could decline by 0.51%, while diesel is expected to see a more notable drop of 6.77%. In contrast, LPG prices are projected to rise sharply by 10.41%. The anticipated reduction in petrol and diesel prices is largely due to falling global benchmark prices and the continued impact of a joint government and industry intervention aimed at easing the burden on consumers. However, the sharp increase in LPG prices is linked to the delayed effects of the current tender arrangement, which had previously helped cushion price hikes but is now beginning to reflect in market pricing. On the international market, crude oil prices recorded a significant decline, dropping from $129.80 per barrel to $113.80 per barrel—a 12.33% decrease. The drop has been attributed to easing geopolitical tensions, particularly expectations that the most intense phase of the US–Iran conflict may have subsided. Despite this, uncertainty remains in the global energy market, with reports of the Organization of the Petroleum Exporting Countries facing potential shifts following the United Arab Emirates’ reported exit, raising concerns about future oil supply dynamics. Prices of refined petroleum products also trended downward during the period, with diesel recording the steepest decline of 14.16%, followed by LPG at 13.11% and petrol at 1.08%. Meanwhile, the Ghana cedi weakened slightly against the US dollar, depreciating from GH¢11.13 to GH¢11.21, representing a 0.65% decline. In response to these developments, the National Petroleum Authority (NPA) has adjusted price floors for the first pricing window of May. Petrol is expected to sell at a minimum of GH¢13.25 per litre, down slightly from GH¢13.27, while diesel’s price floor has dropped more significantly to GH¢14.30 per litre from GH¢16.10. In contrast, LPG’s price floor has risen sharply to GH¢13.02 per kilogram, up from GH¢10.79, reflecting the projected increase. The NPA has reiterated that all oil marketing companies must comply with the approved price floors under its pricing guidelines. However, it noted that the final pump prices may vary, as they exclude additional costs such as international trading premiums and operational margins set independently by industry players.