Diesel has nearly doubled in price – NPA boss explains why Ghana’s pumps haven’t followed

The CEO of the National Petroleum Authority (NPA) in Ghana, Godwin Edudzi Tamakloe, has explained why diesel prices at the country's fuel stations have not risen as sharply as the international market has seen a near doubling in diesel prices since February. The NPA raised the minimum price floor for diesel from GH¢15.60 to GH¢16.77 per litre on September 16.

Some oil marketing companies, such as Star Oil, have subsequently raised their prices to GH¢17.77 per litre. Tamakloe attributes the relatively lower increase in Ghanaian pump prices to the stability of the cedi and deliberate government intervention. He mentioned that economic managers, including the Gold Board, the Bank of Ghana, and the Finance Ministry, have worked together to support the cedi.

The NPA boss noted that the international Free On Board (FOB) price of diesel, which was $794 per metric ton before the US-led attack on Iran, has now surged to $1,519 per metric ton. This represents a 100% increase in the international price, almost double its previous value. However, Tamakloe explained that the impact on Ghanaian fuel stations has been moderated by the cedi's strength and government measures to cushion consumers from the full effects of the international price surge.

He also pointed out that the situation in Ghana has been better managed compared to other countries facing similar issues, such as unrest in Syria and the United States seeing the highest increase in diesel prices in history.