Ghanaian consumers are facing yet another fuel price hike as oil marketing companies (OMCs) adjust prices upwards during the first pricing window of February 2025. This increase marks the third consecutive rise this year, contrasting with recent reassurances from Edudzi Tameklo, Acting Chief Executive Officer of the National Petroleum Authority (NPA), who had promised measures to stabilize fuel costs. During a media engagement last week, Tameklo expressed confidence, stating, "efforts were underway to mitigate the impact of price fluctuations." Nevertheless, the latest adjustments tell another story, with major fuel retailers imposing increased prices again.
For example, Shell has raised the price of petrol from GH₵15.59 per litre at the end of January to GH₵16.23, and diesel now costs GH₵16.20, up from GH₵15.79 per litre. Competing brand Star Oil has maintained its petrol price at GH₵14.99, yet diesel increased from GH₵14.99 to GH₵15.37 per litre. The Chamber of Petroleum Consumers (COPEC) previously predicted slight price increments, attributing these to rising global crude oil prices alongside the continued depreciation of the cedi. Brent crude oil has been trading above $80 per barrel, worsening the situation as the Ghanaian cedi weakens against the US dollar, thereby increasing import costs for fuel suppliers.
Consumer and business reactions have grown increasingly concerned over these persistent hikes, which threaten to affect the broader cost of goods and services across the market. There are rising calls for the government and NPA to implement sustainable solutions to manage this volatility effectively. With the next pricing window approaching mid-February, many industry watchers are closely monitoring whether prices will stabilize or continue to rise.
Across continents, fuel prices are also rising steeply. Bhubaneswar, India, recorded petrol at Rs 101.11 per litre and diesel at Rs 92.69 per litre as of February 4, 2025. Just the day before, the fuel prices increased by 0.14 paise with estimates showing slight upticks of 0.02 paise over the last 24 hours. Prices reported from other major Indian cities on the same date included petrol at Rs 94.77 per litre in Delhi and Rs 105.01 per litre in Kolkata, reflecting similar trends of increasing fuel costs.
Meanwhile, the United States is bracing for changes due to tariffs imposed on products imported from Canada, which will soon be reflected at the gas pump. Analysts forecast this could lead to price increases of about 15 cents per gallon or more as President Trump's administration follows through on regulatory changes impacting significant trading partners. Tariffs on energy products have been rated at 10%—lower than the 25% placed on other categories—to limit the impact on gasoline prices. Despite the efforts to minimize the increase, the tariffs inevitably run the risk of pushing prices upward.
According to analyst Andy Lipow of Lipow Oil Associates, wholesale gasoline prices have already risen by 8 cents per gallon following expectations of crude oil purchases being diverted from the U.S. market due to the tariff implementations. Presently, the average price of gasoline hovers around $3.10 per gallon. Diesel pricing has also reflected upward trends, with increases potentially leading trucking companies to impose fuel surcharges, thereby affecting product prices nationwide as nearly all consumer goods have some form of transport costs tied to it.
The ripple effects are anticipated to spread over the coming months. Lipow also mentioned, "What you are seeing is a great reshuffling of oil about to begin," indicating the shifting dynamics as traders speculate long-term consequences of these tariffs. Areas heavily reliant on Canadian imports, such as the Great Lakes, Midwest, and Northeast U.S., could experience relatively significant fuel price hikes.
Nevertheless, analysts highlight winter demand's seasonal low might confer some cushion upon consumers against sudden surges at the pump, as fuel usage statistics tend to wane during colder months. Tom Kloza, global head of energy analysis for OPIS, remarked, "Gas prices are typically near lows for the year in February due to weak demand." He continued to explain how tariff impacts may vary across the nation depending on regional reliance on Canadian energy imports, predicting notable differences, especially for states predominantly served by Midwest refineries which source their products via pipeline.
Finally, across the market, average gasoline prices recorded 15.6 cents per gallon lower compared to last week, averaging $2.72, as per GasBuddy’s survey results. Despite some areas indicating price drops, Patrick De Haan of GasBuddy pointed to the unyielding pressures from the recent trade tensions and potential for future tariffs to consistently influence fuel costs. While price fluctuations are particularly acute, the interplay between local market conditions and larger, global economic factors remains pivotal to future pricing forecasts.