Fuel Prices Set to Drop from June 16 After Levy Suspension

Ghanaians can expect a drop in fuel prices starting Monday, June 16, 2025, following the government’s decision to suspend the proposed GH¢1.0 Energy Sector Levy. This comes as a relief to consumers and marks the seventh consecutive price reduction since mid-February.

The latest Pricing Outlook Report from the Chamber of Oil Marketing Companies (COMAC) indicates that the postponement of the levy is a key factor driving the anticipated price cuts.

Projected Prices at the Pump

According to data sourced from oil marketing firms and obtained by Joy Business, the new price of petrol is expected to be around GH¢11.77 per litre — representing a drop between 1.1% and 2.25% from prices recorded on June 1.

Diesel prices are set for a more significant decrease, falling by as much as 4.3% to about GH¢12.13 per litre. Likewise, Liquefied Petroleum Gas (LPG) will see a 3.2% dip, bringing the price per kilogram to GH¢13.30.

Why Are Prices Falling?

The Chamber attributes the downward trend primarily to the Ghana cedi’s continued appreciation against the US dollar. This currency strength has offset the impact of rising global oil prices, which surged amid renewed conflict in the Middle East.

Despite crude oil prices climbing to around $75 per barrel due to Israel’s military strikes on Iranian nuclear sites, Ghanaian fuel prices remain stable — for now. The situation, however, remains volatile.

Warning Signs for July

Officials at COMAC caution that if global oil prices continue to climb, fuel prices in Ghana could begin to rise again starting July 1, 2025.

Recent escalations in the Middle East have already caused oil prices to rise sharply, with Brent crude jumping 4.41% from $65.35 to $68.23 per barrel. These tensions have also prompted the United States to partially evacuate its embassy in Iraq, adding to global uncertainty.

As a result, international benchmark prices for petrol and diesel have risen by 1.03% and 3.94% respectively. In contrast, LPG prices dropped by 1.79%.

Impact of the Suspended Levy

COMAC’s projections suggest that had the government gone ahead with the additional GH¢1.0 Energy Sector Levy, consumers would have faced significant price hikes. Petrol would have surged by 9.1% per litre and diesel by 8.25%. LPG would have still seen a modest 2.29% decline, as it was not included in the levy’s scope.

The current suspension offers temporary relief, but stakeholders warn that sustained global instability may force a reversal of the current trend in the coming weeks.