Ghana to subsidise fuel prices for one month amid global oil spike
By Joojo Maapa
Ghana will temporarily absorb part of retail fuel costs beginning April 16, in a move aimed at cushioning consumers and businesses from rising global oil prices linked to tensions in the Middle East, the government said on Wednesday.
Minister for Government Communications, Felix Kwakye Ofosu, said the government would cover GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol for an initial period of one month.
The intervention comes as global energy markets remain volatile, with supply concerns pushing up fuel prices and exerting pressure on domestic transport and production costs across West Africa.
Before the Iran-conflict, a liter of petrol was selling for under GH¢10 per litre, one of the lowest prices in years after a strong showing by the local currency against major trading currencies.
“The decision is in response to external market conditions affecting domestic fuel prices,” the minister said in a statement.
The temporary subsidy is expected to provide relief to households, transport operators, and businesses, particularly in sectors sensitive to fuel price fluctuations, including logistics, agriculture, and manufacturing.
Officials said the measure follows consultations with stakeholders, including civil society organisations, on the economic impact of rising fuel costs. The discussions were held after President John Dramani Mahama engaged key groups to assess the potential fallout of sustained price increases.
The move could help stabilise short-term inflationary pressures and support consumer spending, though its fiscal implications will depend on global oil price trends and the duration of the intervention.
Ghana, like many import-dependent economies in the region, remains exposed to external energy price shocks, making temporary subsidies a common policy tool during periods of heightened volatility.
The government did not indicate whether the measure could be extended beyond the one-month period, noting that it would continue to monitor developments in global markets.
Ghana to subsidise fuel prices for one month amid global oil spike | AviationGhana
