Rising Fuel Prices in Ghana (February 2025): What You Need to Know

Fuel prices in Ghana are on the rise again, and for some people, this means less night car rides to Aburi and more troskis to go home and sleep. With the Chamber of Petroleum Consumers (COPEC) urging the newly appointed government to act, here’s a brief breakdown of the situation and its impact on everyday life.

What’s Happening?

In the latest pricing window of February 2025, fuel prices have been adjusted for the third consecutive time this year. Major oil marketing companies (OMCs) are increasing prices due to the volatile global crude oil market and a depreciating local currency. On Monday, 3rd February, StarOil maintained its petrol price at ₵14.99 per litre while raising its diesel price to ₵15.37 per litre. Then, within 24 hours on Tuesday, the price of petrol was also increased, with the price of their premium fuel climbing on both days. Other filling stations for example, Shell also raised their petrol prices on Monday and are actually the first filling station this year to have all their fuel products priced well above ₵16 per litre.

These changes come despite reassurances from the National Petroleum Authority (NPA) that measures were being implemented to stabilise costs. However, petrol has increased by approximately 150% and diesel by nearly 200% from 2020 to 2024. In 2020, petrol and diesel pump prices averaged below ₵5 but now the current average pump prices are above ₵14 per litre for both petrol and diesel.

Why the Increase?

Several factors are driving these price hikes according to the Ghana Chamber of Bulk Oil Distributors (CBOD) including:

Global Crude Oil Prices: The international market has seen rising crude oil prices, with benchmarks such as Brent crude trading around $80 per barrel.

Currency Depreciation: The Ghanaian cedi continues to weaken against the US dollar.

Global Events: Ongoing issues, including the Russia-Ukraine conflict, the aftershocks of the COVID-19 pandemic, and tensions in the Middle East (such as the Israel-Iran conflict), have all disrupted supply chains and increased costs.

COPEC’s Executive Secretary, Duncan Amoah, has warned that unless the government intervenes with a comprehensive strategy - such as increasing local refining capacity or creating a strategic reserve - Ghana will continue to experience economic strain.

The Impact on Households and Businesses

Fuel price hikes do not only affect motorists. The rising costs have a ripple effect on the economy:

Transportation Costs: As fuel becomes more expensive, transport fares are also on the rise, impacting daily commuters and increasing the cost of goods and services.

Household Budgets: Whether it is for cooking gas or petrol for personal vehicles, higher prices mean less disposable income for many young professionals and students.

Business Operations: Companies face increased operational costs especially with couriers and deliveries, which may eventually lead to higher prices for products and services.

Looking Ahead

The current situation calls for urgent intervention. COPEC’s call to action is a reminder that without decisive government measures, the cycle of rising fuel prices will continue to squeeze both consumers and businesses. As the next pricing window approaches in mid-February, all eyes are on the policy decisions and market trends.

For young Ghanaians, staying informed and planning ahead is crucial. Follow us on X (formerly Twitter) to keep an eye on exchange rates, fuel prices, and the broader economic climate to help in making smarter choices in these challenging times.