Fuel prices to fall from June 16 due to postponement of GH¢1.0 levy

The prices of petroleum products are expected to go down at the pumps from Monday, 16th June 2025, following the postponement of the GH¢1.0 Energy Sector Levy.

This is based on the Pricing Outlook Report put together by the Chamber of Oil Marketing Companies.

According to the report, the drop in fuel prices will be the seventh since February 16, 2025.

The implementation of the levy will have pushed prices of petroleum products up.

Pricing Dynamics from June 16 2025

Based on the Pricing outlook from June 16 to 30, 2025, that Joy Business has secured from the Oil Marketing Companies (OMCs), a litre of petrol is likely to be sold at GH¢11.77. This will represent a drop of between 1.1% and 2.25% from the price quotes on June 1, 2025.

Diesel would witness one of its biggest drops in recent times, going down by as much as 4.3%. This could result in a litre being sold at the pumps at GH¢12.13.

Similarly, Liquefied Petroleum Gas (LPG) is expected to decline by 3.2%. This will result in a kilogramme being sold at GH¢13.30.

Reasons

COMAC had told Joy Business that the cedi’s continuous appreciation against the US dollar is the major reason for the reduction at the pumps.

This is despite the prices of petroleum products rising on the international market. This even got worse last week following a sudden war between Israel and Iran in the Middle East. The price of Brent crude is presently hovering around US$75 per barrel.

However, officials of the chamber have indicated that if the current spike in crude prices does not halt in the coming weeks, then consumers should brace themselves up for an increase in fuel prices from the 1st of July 2025.

Crude Oil Dynamics and Pricing

The report by COMAC also revealed that crude oil prices have been rising on the international market and is a threat to fuel price stability in the country

Tensions in the Middle East have escalated after Israel launched military strikes on Iran’s nuclear facilities, triggering a sharp rise in oil prices and heightening global uncertainty.

Crude prices climbed 4.41%, from $65.35 to $68.23 per barrel as of the time the report was being prepared. This surge was further fueled by the U.S. ordering a partial evacuation of its embassy in Iraq due to rising security concerns.

Following the rise in crude oil prices, international products for petrol and diesel surged by 1.03% and 3.94% respectively. Conversely, LPG prices declined by 1.79%.

Application of GH¢1.0 Energy Sector Levy

The various scenarios put out by the Chamber of Oil Marketing Companies showed that if the government had not suspended the additional GH¢1.0 levy, fuel prices would have witnessed a significant increase at the pumps from June 16, 2025.

The data showed that petrol will have gone up by some 9.1% per litre .

Diesel would have witnessed an 8.25% jump per litre. LPG would have still decreased by 2.29% because it wasn’t part of the petroleum product to be affected.