Ghana maintains 10th position with lowest fuel price in Africa

Ghana has retained its 10th position with the lowest fuel price in Africa in May 2024 despite the cedi’s depreciation to the US dollar, GlobalPetrolPrices.com has revealed.

In April 2024, Ghana chalked the same position with a double increment in fuel prices in one pricing window.

Due to the rapid depreciation of the cedi, fuel consumers in Ghana are not benefiting from the expected decrease in pump prices, despite a decline in global petroleum prices.

The Ghana cedi continues to lose ground to the major trading currencies this week, especially the US dollar.

Businesses have expressed their frustration over the current state of the cedi.

The cedi was trading against the dollar at GH₵ 11.98 on Monday, May 20.

However, it crossed GH₵ 15.24 at the close of business day on May 16 at the forex bureaus which are now trading at GH₵ 14.45, resulting in a depreciation rate of close to 20% since the beginning of the year.

According to the ranking, Ghana’s average petrol price of $1.070 per litre ranks 47th globally.

Libya also retained the number one position in Africa with the lowest fuel price of $0.031 per litre on the African continent but 2nd globally.

Egypt and Algeria came 2nd and 3rd respectively with fuel prices of $0.289 and $0.353 per litre.

From 4th, 5th, 6th, 7th, 8th and 9th were Angola ($0.353), Nigeria ($0.491), Sudan ($0.700), Tunisia ($0.811), Liberia ($0.966) and Gabon ($0.968) respectively.

Fuel prices were expected to ease from May 16, 2024, but the depreciation of the cedi to the US dollar prevented a drop in the prices of petroleum products.

This follows a reduction in prices of refined petroleum products on the international market which is wider than the cedi’s depreciation.

“Following the changes recorded on the international market for refined petroleum product, Gasoline [petrol], Gasoil [diesel] and Liquified Petroleum Gas (LPG) recorded a fall of about 5.68%, 4.51% and 4.72% respectively”, the Institute for Energy Policy revealed.

“In the second pricing window for May 2024, ex-pump is expected to fall given the reductions recorded for refined petroleum products on the international market, which is wider than Ghana cedi depreciation”, it mentioned.