Audio By Carbonatix
Prices of petroleum products are expected to drop at the pumps from Friday, May 16, 2025, the Chamber of Oil Marketing Companies (COMAC) has confirmed to Joy Business.
The chamber has attributed the expected reduction in prices to the cedi’s current performance and reduction in prices of finished petroleum products on the international market.
Speaking to Joy Business, the Chief Executive of COMAC, Dr. Riverson Oppong said the reduction in prices was anticipated since the foreign exchange rate is major factor in the price determination.
He explained that a stable forex rate is a good indication for consumers to enjoy price reduction at the pumps.
“One of the biggest components in the price derivation of crude oil product prices in Ghana has to do with the forex”, he said.
He added that the situation has also been impacted by the weakening of the U.S dollar, plummeting prices of crude oil on the world market.
“As we speak now, the benchmark prices are falling as well, and the U.S. is falling. That's why you've seen petroleum product prices coming down. All the way from 15% to 13% today, on average”, he said.
Dr. Oppong is optimistic the trend may continue – resulting in consumers enjoying some relief through price reduction.
“Indeed, we expect this to continue. As far as these two components play their roles, plummeting down or taking a nosedive, I believe that ordinary Ghanaians or you and I will need to benefit from it in all angles”, he said excitedly.
Cedis’ good run
The Ghana cedi gained 6.25% week-on-week against the dollar in the retail market, cementing its position as the best currency among a basket of 15 Sub-Saharan African currencies.
This took its year-to-date gains against the American greenback to 16.29%.
It traded at a mid-rate of GH¢13.60 to one dollar at the close of the week’s trading on the retail market.
The market remained liquid following an aggregate market supply of US$378.6 million.
The local unit also gained 7.61% week-on-week versus the pound and 5.81% to the euro.
The cedi began the week on May 12, 2025, selling at GH¢13.60 to one US dollar in the retail market. In the interbank market, it is going for GH¢12.89 to one dollar.
The Global Credit Rating Agency S&P Global Ratings upgraded Ghana's long- and short-term foreign currency sovereign credit ratings to 'CCC+/C' from 'Selective Default'. The agency also affirmed the country’s debt at “CCC+” and long- and short-term local currency ratings at 'CCC+/C', with a stable outlook on both the foreign and local currency ratings.
The firm attributed the upgrade to Ghana’s economic growth, ongoing fiscal reforms, and Ghana's improved external position against high debt service costs, along with an improving track record of public financial management through election cycles.
Analysts see the upgrades as positive developments that will support the cedi’s stability in the near term. However, this week, they expect the cedi to continue gaining on improved sentiments and Bank of Ghana’s support.
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