Prices of petroleum products are expected to decline marginally at the pumps from today, December 16.

The projection is contained in the latest outlook report by the Chamber of Oil Marketing Companies (COMAC), which guides pricing decisions by oil marketing companies, and has been sighted by JoyBusiness.

Projected Reduction

The price of petrol is expected to fall by between 1.64% and 3.89%, bringing the pump price per litre to about GH¢12.90.

Diesel is projected to decline by as much as 4.59%, which should see a litre selling at around GH¢13.20.

Liquefied Petroleum Gas (LPG) is also expected to drop by up to 2.16%, resulting in a kilogram selling at approximately GH¢14.00.

Reasons

According to the Chamber of Oil Marketing Companies, the expected reduction has been influenced mainly by declining prices of finished petroleum products on the international market.

The report noted that despite a marginal increase in crude oil prices, major petroleum products recorded price declines due to global oversupply.

Petrol prices fell by 6.5%, diesel dropped significantly by 11.67%, while LPG eased by 0.22%.

The cedi, however, depreciated marginally from GH¢11.14 to GH¢11.43 over the period.

The Chamber explained that the price drop also aligns with seasonal festive expectations and demand pressures.

It added that limited foreign exchange support restrained further appreciation of the Ghana cedi during the period.

Some market analysts told JoyBusiness that government may need to do more to firmly stabilise the cedi to ensure that the current price relief at the pumps is sustained.

Others argued that without the recent pressure on the local currency, Ghana could have witnessed steeper fuel price reductions in the second pricing window.