Starting Friday, May 16, 2025, consumers in Ghana can look forward to a significant reduction in petroleum prices at the pumps, as confirmed by the Chamber of Oil Marketing Companies (COMAC). This anticipated decline in fuel costs is attributed to the Ghanaian cedi's recent performance against the U.S. dollar and a decrease in the prices of finished petroleum products on the international market, good news for everyday consumers.
In an interview with Ghana Prime News, Dr. Riverson Oppong, the Chief Executive of COMAC, expressed optimism regarding the price adjustments. “Consumers can expect some relief,” he stated, reflecting on the favorable developments in foreign exchange rates that play a crucial role in price determination. “One of the primary factors affecting the pricing of crude oil products in Ghana is the foreign exchange rate,” he elaborated, explaining that a stable cedi empowers consumers by enabling price drops.
Dr. Oppong highlighted the recent performance of the U.S. dollar, noting that its weakening, alongside declining benchmark crude oil prices globally, has led to significant reductions in petroleum prices. Current data reveal that the average price of petroleum products has decreased from 15% to 13% recently. “With these shifts, Ghanaians will see lower prices at the pump,” he added enthusiastically, suggesting that ongoing trends could provide further relief.
The Ghanaian cedi has indeed shown remarkable strength, gaining 6.25% week-on-week against the U.S. dollar in the retail market. This impressive performance has positioned the cedi as the top-performing currency among 15 sub-Saharan African currencies. As of last week, the cedi's year-to-date appreciation against the dollar stood at 16.29%. This newfound stability is expected to bolster consumer confidence, further reflecting in various sectors of the economy.
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As of May 12, 2025, the cedi traded at a mid-rate of GH¢13.60 to one U.S. dollar in the retail market, while within the interbank market, it was slightly lower at GH¢12.89 to the dollar. The liquidity in the market was strong, fueled by an impressive aggregate supply of USD 378.6 million. Additionally, the cedi demonstrated gains of 7.61% against the pound and 5.81% against the euro during the same period, showcasing its robust performance.
In a further boost for Ghana’s economic landscape, the Global Credit Rating Agency, S&P Global Ratings, recently upgraded the nation’s long- and short-term foreign currency sovereign credit ratings from 'Selective Default' to 'CCC+/C'. The agency also confirmed the country’s debt rating at “CCC+,” maintaining a stable outlook for both foreign and local currency ratings. This upgrade reflects advancements in Ghana's economic growth, ongoing fiscal reforms, and an improved external position despite high debt service costs.
Analysts suggest that such ratings serve as positive indicators for the cedi's stability in the near term. "We expect to see ongoing support from market sentiment and action from the Bank of Ghana,” a financial analyst noted, emphasizing that these updates can profoundly impact consumer behavior and financial market conditions.
Dr. Oppong expressed hope that the combination of these favorable economic factors will continue to facilitate lower prices for petroleum and other goods, benefiting the average Ghanaian. “If these trends persist – particularly the drop in crude oil prices and the strengthening of our currency – we will see continual benefits in our economy.”
As consumers prepare for the upcoming price reductions at fuel stations, it is clear that the Ghanaian cedi's impressive performance against the U.S. dollar and international market trends are playing a crucial role in this economic turnaround. With optimistic forecasts from both oil marketing companies and financial analysts, Ghanaians have good reason to remain hopeful about the impacts on their wallets and the broader economy.
In a landscape where fuel costs are often a significant burden, these upcoming changes might not only provide immediate relief but could also signal a more robust economic future for Ghana. As consumers celebrate, the narrative of the cedi’s resurgence writes an encouraging chapter in Ghana's ongoing economic story.