By Daniel Bampoe
Consumers across Ghana can expect a significant reprieve at the fuel pumps starting Monday, June 16, 2025, following the government’s last-minute decision to postpone the implementation of a controversial GH¢1.0 Energy Sector Recovery Levy.
According to the latest Pricing Outlook Report compiled by the Chamber of Oil Marketing Companies (COMAC), the decision to suspend the new levy has directly contributed to the anticipated drop in fuel prices—marking the seventh consecutive reduction since February 2025.
The report, which was accessed by Joy Business, forecasts modest yet welcome reductions in prices of petrol, diesel, and liquefied petroleum gas (LPG) for the second pricing window of June.
What the New Prices Look Like
Based on projections by COMAC and data provided by Oil Marketing Companies (OMCs), petrol prices are expected to fall by 1.1% to 2.25%, translating into a new average pump price of GH¢11.77 per liter.
Diesel will see a more notable dip—a drop of up to 4.3%, bringing the price down to around GH¢12.13 per liter.
Liquefied Petroleum Gas (LPG), often used in homes and commercial kitchens, is also set to decline by 3.2%, with the average price per kilogram expected at GH¢13.30.
Why Are Prices Dropping Despite Global Turmoil?
Surprisingly, the domestic reduction is happening against the backdrop of rising global oil prices. Tensions in the Middle East—particularly after Israel’s military strikes on Iranian nuclear sites—have caused Brent crude prices to spike, currently hovering around US$75 per barrel.
However, COMAC attributes the falling local prices to the appreciation of the Ghanaian cedi against the US dollar, which has helped cushion the effect of rising international prices on local pump rates.
“This shows the importance of exchange rate stability in fuel pricing,” a COMAC official told Joy Business, warning, however, that any reversal in the cedi’s gains or sustained global instability could trigger price hikes by July 1, 2025.
The GH¢1 Energy Sector Levy was initially scheduled for implementation in mid-June, as part of broader government efforts to raise funds for legacy energy sector debts.
However, faced with mounting pressure from civil society groups, the transport unions, and political opposition, the Ministry of Finance delayed the rollout.
Had the levy taken effect, COMAC’s analysis shows that:
Petrol prices would have surged by 9.1% per litre, adding nearly GH¢1 to each litre.
Diesel would have jumped by 8.25% per liter.
LPG prices would have remained unaffected since the levy did not apply to it, though a modest decrease of 2.29% was already projected.
Oil Market Trends: What Lies Ahead?
While Ghanaians may enjoy lower prices in the short term, international market volatility remains a risk. COMAC noted that oil prices surged by 4.41% within just a week, with U.S. embassies in the Middle East partially evacuated due to growing regional instability.
Additionally, petrol and diesel prices on the international market went up by 1.03% and 3.94% respectively, while LPG dropped by 1.79%, offering mixed signals about future pricing direction.
COMAC has warned that if global crude prices continue to climb and the cedi weakens, the fuel price cuts may not last long.
Ghanaians may begin to feel the pinch as early as July 2025, unless government policy and forex stability are maintained.
- Public Reaction and Political Context
The suspension of the GH¢1 levy has been welcomed by many consumers and advocacy groups who had criticized it as an additional burden on already stretched household budgets. Some groups, including the Transport Operators Union and the Minority in Parliament, have gone further, demanding a complete repeal of the levy rather than a temporary suspension.
The development comes amid growing public scrutiny of government pricing interventions, subsidy policies, and debt management in the energy sector.
However, as it stands, the next few weeks will be crucial in determining whether the relief at the pumps becomes a trend or a brief breather before another round of price hikes.
