Fuel prices in Ghana are expected to decline at the pumps starting Friday, May 16, 2025. This is due to the strengthening of the Ghana cedi and falling prices of refined petroleum products on the global market.
According to the Chamber of Oil Marketing Companies (COMAC), the appreciation of the local currency has significantly contributed to the expected drop. The Chief Executive Officer of COMAC, Dr. Riverson Oppong, stated that foreign exchange is a key driver in petroleum pricing in Ghana, and the recent gains by the cedi are now reflecting positively at the pumps.
“One of the most significant factors in fuel price calculations in Ghana is the forex rate,” Dr. Oppong said. “With the cedi appreciating and the U.S. dollar weakening, along with declining crude prices, the market is naturally adjusting downwards.”
He also noted that global benchmark prices for petroleum products have been decreasing, leading to an average reduction of between 13% and 15%. Dr. Oppong expressed confidence that if the current trends continue, consumers will see further price relief in the coming weeks.
The Ghana cedi has shown impressive strength on the retail market, appreciating by 6.25% against the U.S. dollar on a week-on-week basis. This performance places it as the best-performing currency among 15 Sub-Saharan African currencies. So far in 2025, the cedi has appreciated 16.29% against the dollar.
The cedi traded at a mid-rate of GH¢13.60 to one U.S. dollar by the end of last week, supported by a market supply of US$378.6 million. It also gained 7.61% against the British pound and 5.81% against the euro within the same period.
On the interbank market, the cedi was trading at GH¢12.89 to the dollar as of the beginning of the week.
Ghana’s economic outlook received another boost as S&P Global Ratings upgraded the country’s long- and short-term foreign currency sovereign credit ratings from ‘Selective Default’ to ‘CCC+/C’. The agency also affirmed the local currency ratings at ‘CCC+/C’, maintaining a stable outlook.
S&P cited Ghana’s improving economic growth, fiscal reforms, and stronger external position as reasons for the upgrade, despite continued challenges with debt servicing. The agency also commended Ghana’s public financial management efforts, particularly during the current election season.