Motorists are set to enjoy significant relief at the pumps from June 16, as fuel prices are projected to fall sharply nationwide.

The latest pricing outlook released by the Chamber of Oil Marketing Companies (COMAC) and sighted by Joy Business indicates that petrol, diesel and LPG will all record reductions during the second pricing window of June.

Petrol Leads Price Decline

Petrol is expected to see the largest reduction, with prices projected to fall by up to 9.31%.

If oil marketing companies fully apply the projected reduction, a litre of petrol could sell for about GH¢14.72, making it one of the steepest fuel price cuts seen in recent times.

Diesel prices are also expected to decline, with a litre likely to sell around GH¢17.02, particularly among oil marketing companies that procure products on credit from Bulk Oil Distributors.

LPG prices are projected to ease marginally, with a kilogram expected to sell at about GH¢17.20.

Joy Business understands that the reduction margin for diesel remains relatively small due to the full removal of the government-industry intervention mechanism, while LPG prices continue to be influenced by existing tender arrangements.

Industry players say the decline could have been even steeper if not for the recent depreciation of the cedi. According to COMAC, the local currency weakened from GH¢11.59 to GH¢11.80 per US dollar during the pricing period, representing a 2.45% loss in value.

NPA Slashes Price Floor

The National Petroleum Authority (NPA) has also announced new price floors for the June 16–30 pricing window.

The price floor for petrol has been reduced from GH¢15.20 per litre in the first half of June to GH¢13.39 per litre. Diesel’s price floor has also dropped from GH¢15.49 to GH¢15.11 per litre.

The NPA has directed industry players to comply with the new price floors, meaning no oil marketing company is expected to sell below the approved rates.

However, given the intense competition currently prevailing in the market, industry watchers believe some major players, including GOIL and Star Oil, could price their products very close to the new floors.

Why Prices Are Falling

According to COMAC, the projected reductions are driven primarily by falling crude oil prices and declining prices of refined petroleum products on international markets.

Crude oil prices have dropped sharply this month, falling from about $110 per barrel to $97 per barrel, representing a decline of roughly 12%.

The decline has been attributed to weaker Chinese imports, record-high US oil exports and continued releases from strategic petroleum reserves by member countries of the International Energy Agency (IEA).

Prices of finished petroleum products have also recorded their biggest declines this year. COMAC estimates that LPG prices fell by 19.94%, petrol by 15.21% and diesel by 10.17% on the international market.

There are also indications that crude oil prices could ease further following reports of a new agreement aimed at ending the conflict in the Middle East, a development that could provide additional relief for consumers in the coming pricing windows.