LPG prices shoot up in Ghana

Ghanaians are set to face another round of fuel price hikes beginning April 1, 2026, as new projections point to a sharp rise in the cost of petroleum products at the pumps.

The expected increase, driven by a mix of global market pressures and local economic conditions, is likely to deepen the cost-of-living burden on households and businesses across the country.

According to the latest outlook report by the Chamber of Oil Marketing Companies, the price of petrol is projected to rise by 8.06 percent to approximately GH¢15.19 per litre.

Diesel is expected to see an even steeper increase of 9.76 percent, pushing its price to about GH¢17.85 per litre, while Liquefied Petroleum Gas (LPG) is also set for a marginal rise to around GH¢16.59 per litre.

This development marks the fifth projected increase in fuel prices since January 2026, underscoring a persistent upward trend that has characterised the petroleum pricing regime in recent months. It is also the second time this year that consumers are confronted with such a significant jump, raising fresh concerns about inflationary pressures and economic stability.

The primary drivers of the price surge can be traced to developments on the international market.

Crude oil prices have risen sharply from $86.55 per barrel to $109.66 per barrel, largely due to escalating geopolitical tensions in the Middle East and growing risks to supply routes, particularly around the Strait of Hormuz. These tensions have disrupted supply expectations and pushed global prices upward.

In addition, international prices for refined petroleum products have recorded substantial increases. LPG saw the highest jump at 36.90 percent, followed by diesel at 27.84 percent and petrol at 24.48 percent.

These global trends have directly translated into higher import costs for Ghana, which relies heavily on imported refined fuel.

On the domestic front, the situation has been compounded by a slight depreciation of the Ghana cedi. The exchange rate for the new pricing window moved from GH¢10.913 to GH¢11.050 to the US dollar, representing a 1.24 percent decline.

Analysts attribute this to heightened demand for foreign exchange by importers, excess liquidity in the financial system, and the overall impact of rising global oil prices.

Meanwhile, the National Petroleum Authority has revised its minimum price floors in line with the new pricing outlook.

Petrol’s floor price has increased from GH¢11.57 to GH¢13.30 per litre, while diesel recorded the most significant adjustment, rising from GH¢14.35 to GH¢17.10 per litre within just two weeks. LPG has also been adjusted upward to GH¢10.71 per kilogramme.

The Authority has directed oil marketing companies to comply with the revised pricing guidelines, noting that the stated figures do not include additional premiums from international traders or margins determined by bulk distributors and retailers, which could further influence final pump prices.