The fuel station prices will receive a slight reduction starting today, April 16, 2025, for petrol and diesel along with LPG. After February, the latest Oil Marketing Companies (OMCs) pricing outlook report has brought about five consecutive fuel price decreases.
What to Expect at the Pump
The fuel cost reduction stands at 1.5%, which brings petrol to GH₵14.88 per litre. The price of diesel is experiencing a 0.3% decrease, making it available at GH₵15.50 per litre. Liquefied Petroleum Gas (LPG) will decrease by 0.3% to obtain GH₵17.45 per kilogram.
Most fuel consumers will experience minor cost savings from the price guidance implementation by more than 100 oil marketing companies.
Why Are Prices Dropping?
The continuous price reduction stems from a global decline in crude oil market costs. Crude oil barrel rates have decreased continuously from their previous $72 value to their current position at $64.
The international market has experienced decreases in both crude oil and refined petroleum products, including diesel and LPG prices. The prices of diesel decreased by 3.72% as LPG experienced an even more significant decline of 9.61%.
Transport costs are likely to decrease in tandem with fuel price reductions.
Although cheaper fuel costs seem like a reason to decrease fares, the process is more complicated than it appears. The Ghana Private Road Transport Union (GPRTU) officials explain that fuel prices alone do not determine fare changes.
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The high costs of motor insurance coverage along with auto parts make it challenging to immediately lower fares. The GPRTU indicates that they will consider fare reductions only when fuel prices reach around GH₵12 per litre.
A Sign of Relief?
The minor price decrease represents a continuing pattern that offers potential relief for drivers and consumers. Decreased fuel costs enable both transportation expenses and production expenses to decrease, which subsequently leads to lower prices for goods and services.
Several consumers believe the declining fuel prices will eventually reduce expenses for domestic spending.
