Accra, Ghana – Motorists and consumers across Ghana should brace for higher fuel costs starting Friday, August 1, as a combination of rising global crude oil prices and a weakening local currency drive up ex-pump prices.
According to the latest pricing forecast from the Chamber of Oil Marketing Companies (COMAC) for the August 1–15 pricing window, all three major petroleum products are poised for substantial increases.
Petrol is expected to climb by 7.58%, pushing the price per litre to approximately **GH¢15.23**. **Diesel** is set for the steepest jump, rising by 12.50% to around **GH¢17.45** per litre. Meanwhile, **Liquefied Petroleum Gas (LPG)** is projected to increase by 4.13%, with a kilogram selling for about **GH¢16.40**.
However, some market observers suggest that the full impact of these increases may be somewhat tempered for consumers, as several Oil Marketing Companies (OMCs) have already implemented price adjustments in recent weeks.
NPA Sets New Price Floors
Ahead of the new pricing window, the National Petroleum Authority (NPA) has announced revised minimum price floors for petroleum products. The price floor for diesel has been raised from GH¢14.35 to **GH¢16.97** per litre, while petrol's floor has increased from GH¢13.28 to **GH¢14.53** per litre. For LPG, the new approved floor stands at **GH¢11.06** per kilogram.
The NPA has directed all OMCs and LPG Marketing Companies (LPGMCs) to ensure they do not sell below these approved minimum levels, effectively setting a baseline that prevents aggressive underpricing even amid market competition.
Drivers Behind the Price Hikes
COMAC attributes the anticipated increases to two primary factors: a sharp uptick in global crude oil prices and the depreciation of the Ghana cedi against the US dollar.
Average crude oil prices surged by 23.25%, climbing from US$71.90 to **US$88.62** per barrel during the review period. Refined petroleum products also recorded significant gains, with diesel leading at 24.84%, followed by petrol at 12.58% and LPG at 12.24%.
The Chamber linked the crude oil rally to escalating geopolitical tensions, particularly the ongoing US-Iran conflict and uncertainty surrounding the reopening of the strategic Strait of Hormuz. Although initial hopes for a peace deal briefly eased prices, Iran's rejection of Oman's shared-control proposal, coupled with renewed tanker attacks and persistent shipping restrictions, have sustained risks and kept Brent crude hovering near US$88 per barrel.
Additionally, the cedi's depreciation has compounded the cost pressures. The exchange rate moved from GH¢11.4970 to **GH¢11.6593** per US dollar during the pricing window, representing a 1.41% decline that further inflates the cost of importing petroleum products.
Consumers are advised to anticipate these changes at the pumps as the new pricing regime takes effect on August 1.
