Ghanaians are set to experience economic relief this festive season as Oil Marketing Companies (OMCs) announce an imminent reduction in fuel prices.

Speaking on JoyNews PM Express Business Edition on Friday, December 12, the Board Chairman of the Chamber of Oil Marketing Companies (COMAC), Gabriel Kumi, announced the reduction, citing falling global product prices.

According to him, indicators already point to clear reductions across petrol, diesel, and LPG, and consumers are expected to feel the relief from mid-December.

He said, “Fortunately, Ghanaians are going to have a very good Christmas in terms of petroleum prices, because the indications already show that the prices of finished petroleum products are going down.”

According to him, petrol and diesel have already recorded reductions of about 6 percent and 10 percent, respectively.

He explained that diesel “has seen about a 10 percent decrease,” petrol “has already seen about a 6 percent decrease,” while LPG has recorded a “1 to 1.5 percent decrease.”

The COMAC Chair said the only major condition for the reductions to materialise is the stability of the cedi.

“If the cedi is held in check, then we can be sure that by December 16, prices of petroleum products will generally go down,” he said.

Mr Kumi added that the reduction will “take us through Christmas,” as the second pricing window, which covers the festive period, is likely to deliver further reductions.

He stressed that Ghana is “likely to see some decrease in the prices of petroleum products.”

The announcement comes barely two weeks after OMCs implemented a slight price increase beginning Monday, December 1.

In its latest outlook report, COMAC indicated that petrol prices at the pumps were projected to sell at GH¢12.91 per litre, representing an increase of between 1.97 percent and 3.30 percent.

Diesel prices were projected to sell at GH¢13.37 per litre, representing an increase of between 2.85 percent and 5.15 percent, while Liquefied Petroleum Gas (LPG) was expected to sell at GH¢13.80 per kilogramme. COMAC attributed the adjustment to marginal increases in the prices of finished petroleum products on the international market, as well as other contributing factors.

Earlier in June, some OMCs reduced prices of petroleum products at the pumps, marking the second reduction within that pricing window.

Leading the trend, Star Oil announced on June 19, 2025, that it had slashed its petrol price from GH¢10.99 per litre to GH¢10.80. Diesel prices at the same outlets were also reduced from GH¢12.77 to GH¢12.13 per litre.

Looking ahead, Allied Oil indicated that it would implement further reductions beginning June 20. Earlier in the month, on June 16, Allied sold petrol at GH¢10.97 per litre, but the new price dropped to GH¢10.75.

Zen Petroleum also joined the trend, reducing its petrol price to GH¢10.75 per litre. Reports indicated that the reductions were driven by heightened competition among major OMCs, sparking a price war in the sector.

Introduced in 2015, the government’s Price Deregulation Policy aimed to encourage competition and help reduce fuel prices beyond the influence of global oil market dynamics.

Meanwhile, some OMCs have hinted that pump prices could increase from July 1, 2025, if the conflict between Israel and Iran in the Middle East continues. Since tensions escalated in the region, crude oil prices have surged from about US$66 to nearly US$76 per barrel.

Despite this, some industry insiders argue that further strengthening of the Ghanaian cedi could help absorb a projected five percent or higher increase in crude oil prices.

So far, petroleum prices have recorded more than six reductions this year, with industry data attributing much of the decline to the appreciation of the cedi.

The escalating missile exchanges between Israel and Iran continue to push global crude oil prices upward, posing a potential threat to Ghana’s fuel costs and overall economic stability.

President John Dramani Mahama has directed the Ministers for Finance and Energy, Dr Cassiel Ato Forson and John Abdulai Jinapor, respectively, to closely monitor the unfolding conflict and propose proactive measures to safeguard the country’s recent economic gains from external shocks.

However, the Chamber of Oil Marketing Companies has assured that the escalating geopolitical tensions between Iran and Israel will not immediately affect the local oil market.

Speaking to the media, the Chief Executive Officer of COMAC, Dr Riverson Oppong, explained that changes in global oil prices usually take some time to reflect at the local pumps.

Meanwhile, a week-old air war between Israel and Iran has escalated, with no clear exit strategy in sight, as Israel bombed nuclear targets in Iran on Thursday, while Iran launched missiles and drones at Israel after striking an Israeli hospital overnight.

The White House said President Donald Trump would decide within the next two weeks whether the United States would join the conflict.

“Based on the fact that there’s a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision on whether or not to go within the next two weeks,” Press Secretary Karoline Leavitt told reporters.

Separately, the government has introduced a new GH¢1 energy sector shortfall and debt repayment levy on petroleum products to settle energy sector shortfalls, reduce legacy debts, and stabilise power supply across the country, following parliamentary approval.

President John Dramani Mahama assented to the levy on June 5 under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141). The Ghana Revenue Authority had earlier announced the implementation of the levy, but it was postponed following strong opposition from oil marketing companies and transport operators.