Fuel prices dip from May 1 as diesel drops sharply, LPG set to surge

Fuel prices in Ghana are set for a mixed adjustment beginning Friday, May 1, 2026, with petrol and diesel expected to record slight to significant reductions, while Liquefied Petroleum Gas (LPG) is projected to see a sharp increase. The latest projections are based on data released by the Chamber of Oil Marketing Companies, reflecting developments in both global oil markets and domestic economic conditions.

According to the Chamber, petrol prices could decline marginally by up to 0.51 percent per litre. This adjustment may see some Oil Marketing Companies (OMCs), particularly those that procure fuel on credit from Bulk Oil Distributing Companies, retail petrol at approximately GH¢14.51 per litre. The slight drop offers modest relief to consumers, especially amid ongoing cost-of-living pressures.

Diesel, however, is expected to record a more substantial reduction, dropping by about 6.77 percent—one of the steepest declines observed in recent months. If fully passed on to consumers, diesel could sell at around GH¢15.87 per litre. This decrease is likely to benefit transport operators, businesses, and industries that rely heavily on diesel for operations.

In contrast, LPG prices are projected to surge by as much as 10.41 percent per kilogramme. This sharp increase comes despite a general decline in international LPG prices, highlighting the influence of local market dynamics. The Chamber explained that the rise is due to the delayed impact of an existing tender arrangement, which had previously helped cushion price increases but is now being reflected in current market pricing.

The downward trend in petrol and diesel prices is largely attributed to falling global crude oil prices, alongside ongoing joint interventions by government and industry stakeholders aimed at stabilizing the domestic fuel market. During the pricing window, global crude oil prices dropped significantly from $129.80 per barrel to $113.80 per barrel, representing a 12.33 percent decrease.

Market sentiment has also improved, with traders increasingly optimistic that tensions related to the US–Iran conflict are easing, reducing uncertainty in global oil supply chains. This shift has contributed to lower prices for refined petroleum products on the international market.

For the May 1 pricing window, diesel recorded the largest international price decline at 14.16 percent, followed by LPG at 13.11 percent and petrol at 1.08 percent. However, these reductions were partially offset by the depreciation of the Ghanaian cedi during the same period.

The Ghana cedi weakened slightly against major currencies, moving from GH¢11.1324 to GH¢11.2057 per US dollar—a 0.65 percent depreciation. This currency movement limited the full impact of falling global prices on local fuel costs.

Attention is now turning to how OMCs will implement the new pricing adjustments, especially as the effective date coincides with a public holiday. Pricing decisions may vary slightly among companies depending on their cost structures and procurement strategies.

Meanwhile, the National Petroleum Authority (NPA) has maintained its price floor guidelines under the Petroleum Products Pricing Guidelines (PPPG). For the current window, petrol has a minimum price of GH¢13.25 per litre, excluding additional margins and charges. Diesel is set at a floor price of GH¢14.30 per litre, while LPG is pegged at GH¢13.02 per kilogramme. Kerosene and Marine Gas Oil Local are also set at GH¢16.13 and GH¢15.41 respectively.

Compared to the previous mid-April pricing window, petrol has seen only a marginal reduction of about 2 pesewas, while diesel has dropped significantly by approximately GH¢1.80 per litre, offering more noticeable relief to consumers.

In a formal notice issued to OMCs, the Authority urged strict compliance with the established price floors. It emphasized that the quoted prices do not include premiums charged by International Oil Trading Companies, nor the margins applied by Bulk Import, Distribution and Export Companies and retailers. These additional costs, the NPA noted, are determined independently by market players in accordance with the PPPG framework.

Overall, the latest pricing outlook reflects a complex interplay between global oil trends, local currency performance, and regulatory mechanisms—resulting in mixed outcomes for consumers across different fuel products.