Fuel Prices Start to Rise Again After Drop Below GH¢10 Per Litre as Cedi Weakens
- Fuel product prices are increasing again after a recent streak of favourable prices for consumers in January 2026
- Projections from the Chamber of Oil Marketing Companies suggest that petrol could rise by about 2.10%
- The cedi traded at about GH¢10.9 to the dollar on the interbank market in 2026, compared with GH¢10.45 at the end of 2025
Fuel prices have started to rise because of the recent cedi depreciation and rising international petroleum prices.
The increases will be the first of 2026 after a streak of reductions.
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Citi News reported that projections from the Chamber of Oil Marketing Companies indicate that petrol could rise by about 2.10%, diesel by 5.10%, and LPG by 1.09%.
Last week, Reuters reported that oil prices hit their highest since early August 2025 as US President Donald Trump considered some action against Iran, sparking concerns of oil supply disruptions.
However, on February 1, oil prices fell 5% after Trump signalled de-escalation in the tensions with Iran.
Within the current pricing window, petrol prices on the international market increased by 2.12%, diesel by 6.73% and LPG by 3.66%, reflecting the upward movement in crude oil prices, which surged significantly in early February from $62.50 per barrel to $67.40 per barrel.
The cedi also depreciated from GH¢10.90 to GH¢10.98 to the US dollar, reflecting a decline of about 0.77%.
At the pump, petrol is projected to sell at approximately GH¢11.48 per litre, while diesel, expected to record the steepest adjustment, could rise to around GH¢12.77 per litre. LPG is also forecast to increase to about GH¢13.50 per kilogram.
However, the Chamber of Oil Marketing Companies has noted that intense competition among oil marketing companies and prevailing market dynamics could see some marketers absorb part of the increases and maintain current pump prices.
Why did fuel prices previously reduce?
The January reduction in fuel prices was driven by a decline in prices of finished petroleum products and the sustained appreciation of the Ghana cedi against the US dollar.
The Chamber of Oil Marketing Companies noted that despite a marginal increase in crude oil prices, major petroleum products recorded price declines due to global oversupply.
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Petrol prices were projected to fall by between 1.26% and 2.30%, diesel was expected to decline by up to 2.10%, and Liquefied Petroleum Gas was projected to drop by as much as 5.09%.
Databank Research has suggested that upcoming foreign exchange pressures on the cedi were limited by the gradual rollout of the US$1 billion allocation for January under the Bank of Ghana’s FX Intermediation Programme.
Argument over fuel price floor
YEN.com.gh reported that the Chief Executive Officer of StarOil Ghana, Kwame Tieku, is calling for the scrapping of the price floor to allow dynamic pricing.
This sparked a back-and-forth with the GOIL MD, Edward Bawa, who suggested hypocrisy on the part of Tieku, claiming that StarOil could be selling at the price floor if its CEO was being sincere.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
