Fuel costs set to scale back marginally on the pumps from nowadays, Dec. 16 – Life Pulse Daily

Introduction

On December 16, 2025, Ghana’s fuel market is poised for a modest easing of prices at the pump. According to the latest forecast released by the Chamber of Oil Marketing Companies (COMAC), petrol, diesel, and liquefied petroleum gas (LPG) are expected to see slight reductions in retail rates. This article breaks down the key points of the COMAC report, explains the underlying factors, and offers practical advice for motorists, businesses, and policymakers navigating the new price landscape.

Key Points

Background

COMAC and Its Role

The Chamber of Oil Marketing Companies (COMAC) is the Ghanaian association that represents all oil marketing firms. COMAC provides quarterly price forecasts that guide the pricing decisions of the 17 licensed oil marketing companies. These forecasts are closely monitored by the government, fuel retailers, and consumers because they influence retail pump prices and fuel tax revenues.

Fuel Market Dynamics in Ghana

Ghana’s fuel market is characterised by a few key components:

• Crude oil price fluctuations: Global oil prices set the baseline cost for refining.
• Currency exchange rates: The Ghanaian cedi is used to import crude oil and refined products; its value against the US dollar can significantly affect local prices.
• Regulatory and tax policies: Fuel excise duties, VAT, and any temporary subsidies or price controls.
• Seasonal demand: The Christmas and New Year period sees a spike in consumption, while the post‑holiday season often sees lower demand.

Analysis

Global Crude Oil Trends

In recent months, crude oil prices have experienced a moderate decline, largely due to an oversupply in the global market and easing geopolitical tensions. According to the International Energy Agency, Brent crude fell by 6.5 % while WTI dipped by 4.8 % over the last quarter. This global price movement translates directly into lower procurement costs for Ghana’s oil marketing companies.

Exchange Rate Impact

The cedi has weakened slightly, trading between GH¢11.14 and GH¢11.43 per US dollar during the forecast period. A weaker cedi increases the local cost of imported crude but can also reduce the price of refined products if the market anticipates a future strengthening. COMAC’s report suggests that the cedi’s modest depreciation has helped cushion the impact of the crude price decline, thereby enabling the price reductions at the pump.

Seasonal Demand and Distribution Pressure

The end‑of‑year holiday season typically drives higher fuel consumption, creating pressure on retail prices. However, the forecast indicates that the supply chain is well balanced and that the anticipated demand surge will be met without requiring price hikes. This equilibrium allows the market to absorb the lower wholesale costs and pass savings to consumers.

Potential Government Intervention

While the COMAC forecast reflects market forces, Ghana’s Ministry of Finance and the Bank of Ghana may intervene to stabilise the cedi or to offer temporary subsidies. Analysts predict that such measures could further temper price volatility, ensuring that the modest reductions are sustained throughout the second half of the year.

Practical Advice

For Individual Drivers

• Take advantage of the price drop by refilling during off‑peak hours to avoid congestion.
• Use fuel‑efficient driving habits—maintain steady speeds, avoid rapid acceleration, and keep tires properly inflated—to maximise the benefit of lower fuel costs.
• Monitor the official COMAC releases and fuel station price listings for real‑time updates.

For Commercial Fleet Operators

• Re‑evaluate fuel contracts and consider bulk purchasing agreements to lock in the lower rates.
• Implement GPS‑based fuel monitoring to detect any discrepancies between pump prices and contract rates.
• Plan route optimisation to reduce fuel consumption, capitalising on the cost savings.

For Small Businesses and Restaurants

• Reassess energy budgets and adjust pricing strategies to maintain profitability while passing on fuel savings to customers.
• Explore alternative energy sources (e.g., solar) to reduce dependence on diesel generators.
• Stay informed about any upcoming tax or subsidy changes that could affect fuel expenses.

For Policy Makers and Regulators

• Use the COMAC forecast as a benchmark to design targeted subsidies during periods of high inflation.
• Enhance transparency in the fuel pricing chain by publishing real‑time price data on a government portal.
• Encourage the development of local refining capacity to reduce import dependence and improve price resilience.

FAQ

Conclusion

The December 2025 COMAC forecast signals a modest but welcome easing of fuel prices across Ghana. Petrol, diesel, and LPG are set to slip slightly, offering relief to individual motorists, commercial operators, and the wider economy. While the easing is driven by global crude oil price declines and a stable cedi, the market remains susceptible to future fluctuations. By staying informed, adopting fuel‑saving practices, and monitoring official releases, stakeholders can make the most of the current price environment and prepare for any subsequent changes.