Fuel Prices in Ghana Driven by Global Market and Exchange Rate – Policy Analyst
A policy analyst at the Natural Resources, Governance Advocacy, Dr. Steve Manteaw, has outlined the key factors influencing fuel prices in Ghana, pointing to global market trends and the exchange rate as the primary determinants.
Making his assertion on Kessben Maakye today, Dr. Manteaw, insisted, although fuel prices on the world market have seen increases, the impact on Ghana has not been as severe due to relative stability in the local currency. He explained that while global events, including tensions in the Middle East, affect fuel prices worldwide, their impact varies depending on the strength and resilience of individual economies.
He commended the government for measures taken to stabilize the economy and cushion citizens against sharp fuel price hikes.
He noted that without such interventions, fuel prices could have surged significantly higher, placing a heavier burden on consumers.
Dr. Manteaw also suggested that if fuel price pressures intensify beyond what the economy can sustain, the Finance Minister could consider reducing certain taxes to help stabilize prices.
He highlighted the role of Ghana’s fuel price stabilization fund, stating that it continues to serve as an important buffer in managing fluctuations in fuel costs.
While acknowledging the challenges posed by rising global oil prices, Dr. Manteaw emphasized that Ghana, as an oil-producing country, also stands to benefit from increased revenues when prices surge.
He further called for urgent investment in the Tema Oil Refinery (TOR), stressing that enhancing its capacity would allow Ghana to refine more crude oil locally for domestic consumption.
“TOR is a strategic national asset that can significantly impact the economy if properly managed,” he said, urging authorities to prioritize refining crude oil locally rather than exporting it and importing refined petroleum products.
Dr. Manteaw concluded that strengthening local refining capacity and maintaining sound economic policies will be key to managing fuel prices, create more job opportunities and ensuring long-term economic stability.
