Fuel prices have risen by more than 33% in Ghana since the start of the year – JoyNews Research
Petrol and diesel prices in Ghana have risen by more than 33% since the start of the year, according to industry data tracked by JoyNews Research, piling pressure on households and businesses still recovering from the country's worst economic crisis in a generation.
Ghana's fuel prices have surged more than 33% since the beginning of the year, according to research conducted by JoyNews, exacerbating financial strain for both individuals and enterprises still grappling with the nation's most severe economic downturn in a generation. The National Petroleum Authority elevated its benchmark price floor for petrol to GH¢14.53 per liter and diesel to GH¢16.97 per liter during the initial pricing window of August, which translates to a 9.4% and 18.3% increase, respectively.
Oil Marketing Companies promptly responded by charging premiums above the floor, with the average price of petrol and diesel settling at GH¢15.98 and GH¢17.30, respectively.
The government attempted to provide temporary relief by reducing the regulatory margin on diesel by GH¢2.00 per liter in early August, a one-month measure approved by Cabinet. However, these measures come at a cost to government revenue. Ghana fully deregulated petroleum pricing in 2015, implying that international price shifts reach consumers more rapidly than in neighboring countries that still subsidize fuel.
Despite the temporary reductions, prices have remained elevated, raising concerns that persistent increases could contribute to inflation.
The Ghana Private Road Transport Union has been advocating for a 30% fare increase, suspending the demand after the government's diesel relief. The union promised to monitor the next two pricing windows in August before deciding whether to proceed, warning that further fuel price hikes could prompt a return to the hike. Inflation eased to 4.6% in July, marking its first slowdown since March, but the Bank of Ghana identified elevated crude prices and Middle East tensions as significant upside risks to the outlook.
With the cedi experiencing a decline of over 10% against the U.S. dollar since the start of the year, businesses continue to demand dollars at a faster pace than the market can supply, further exacerbating the pressure on fuel prices. Two primary factors have driven the surge: the weakening cedi and the Middle East crisis.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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