Fuel prices across Ghana are expected to decline from Wednesday, July 1, bringing some relief to consumers after recent fluctuations in the market.

The Chamber of Petroleum Consumers (COPEC) says the expected reduction is being driven by two key factors: a sharp drop in global crude oil prices and a slight appreciation of the Ghana cedi against the US dollar.

In a statement signed by its Executive Secretary, Duncan Amoah, COPEC explained that global crude oil prices have fallen by nearly 20%, dropping from $97.32 per barrel to $78.16 per barrel. At the same time, the cedi strengthened slightly, with the average interbank exchange rate improving from GHS11.8035 to GHS11.4333 per US dollar, representing a 3.14% gain.

According to COPEC, these developments are expected to push down the prices of petrol, diesel and liquefied petroleum gas (LPG) during the first pricing window of July.

Petrol prices are projected to decline by about 6.21%. The Free on Board (FOB) price dropped from $988.77 per metric tonne to $920.34 per metric tonne, representing a 6.92% decrease.

Based on current market trends, COPEC estimates that petrol will sell at an average price of GHS13.36 per litre, down from the current average of GHS14.24 per litre. Depending on pricing by individual oil marketing companies, consumers could pay between GHS12.69 and GHS14.03 per litre.

Diesel is expected to record an even bigger reduction. Its FOB price fell by 15.18%, from $1,056.38 per metric tonne to $896.02 per metric tonne.

COPEC projects that diesel will retail at an average of GHS14.10 per litre, compared with the current average of GHS16.26 per litre. This represents a 13.28% decrease, with pump prices expected to range between GHS13.39 and GHS14.80 per litre.

LPG prices are also forecast to decline. The FOB price dropped by 15.96%, from $652.65 per metric tonne to $548.50 per metric tonne.

As a result, the average retail price of LPG is expected to fall to GHS10.05 per kilogram. Within the usual pricing margin, consumers could pay between GHS9.54 and GHS10.55 per kilogram.

COPEC expressed optimism that oil marketing companies will quickly adjust pump prices to reflect the lower cost of fuel and provide relief to consumers.

The chamber also praised the government for allocating part of its share of crude oil from the Jubilee fields to support local refineries. It believes the move could reduce fuel imports, ease demand for foreign exchange and help support the stability of the cedi going forward.