Price of petroleum products is expected to witness some significant reduction this week. 

This is based on industry data and calculations by JoyBusiness on price outlook for the next two weeks. 

Sources say the reduction has been largely influenced by the cedi’s marginal stability on the market.

Break down of prices

JoyBusiness’ calculations showed that prices would go down by almost 9 per cent. 

Diesel should go down by almost 2 per cent per litre, Petrol is expected to be reduced by a little over 3 per cent, while LPG would witness the biggest reduction in recent times going down by almost 9 per cent per kilogram. 

Based on the calculations, a gallon of diesel which is made up of 4.5 litres is expected to be sold at 23 cedis 13 pesewas.

 A gallon of petrol would sell at 22 cedis 68 pesewas. 

Importers of petroleum products say the reduction is largely due to the cedi’s improved outlook and stock build-up of the various petroleum products.

Would the reduction happen?

But the concern here is that, whether the over 100 Oil Marketing Companies would indeed reduce their prices by this margin. 

Transport operators are currently pushing for review in fares. 

However, sources close to the government say there can only be some strong bases for adjusting fares, only if, over the past three months fuel prices have been increased over 10 per cent.

National Petroleum Authority

Earlier, the National Petroleum Authority (NPA) said prices of petroleum products are likely to be reduced in the next pricing window as a result of the appreciation for the Ghana cedi against the US dollar and decrease in the price of petroleum products on the world market.

The Authority said in line with the deregulation policy these positive developments would be passed on to the public through pump prices.

Chief Executive Officer (CEO) of NPA, Alhassan Tampuli announced this last week at an Industry Stakeholder Engagement Seminar.

According to him, the Ghana cedi has made some gains against the US Dollar.

Fall prices on world market

In addition, he said the price of diesel and petrol on the world market have decreased by nearly 2 per cent while the price of Liquefied Petroleum Gas (LPG) has also gone down by almost 8 per cent.