Ghanaians should prepare to dig a little deeper into their pockets as fuel prices surge in the second pricing window of the month of October. Across major stations, the cost of both petrol and diesel has gone up, leaving consumers and businesses bracing for the ripple effects these increases are bound to cause.
Looking at the recent price adjustments, it’s clear that both petrol and diesel prices have jumped. Shell, for example, now sells petrol at GHS 14.72, up from GHS 13.79, and diesel at GHS 14.99, up from GHS 14.35. Goil followed with similar increases, bringing petrol from GHS 13.43 to GHS 14.49, and diesel from GHS 14.29 to GHS 14.90.
Even traditionally lower-priced stations like StarOil and So Energy haven’t been spared. StarOil’s petrol has risen from GHS 12.99 to GHS 13.99, with diesel increasing from GHS 13.92 to GHS 14.19. So Energy, which had petrol at GHS 12.9, now sells it for GHS 13.13, while diesel has gone up from GHS 13.75 to GHS 14.30.
JP, another key player in the market, has seen one of the sharpest increases, with petrol rising from GHS 12.67 to GHS 14.27 and diesel from GHS 13.37 to GHS 14.47.
Experts point to several factors driving the rise in fuel prices. Global crude oil prices have been volatile due to geopolitical issues and supply constraints.
The impact of rising fuel prices goes far beyond just paying more at the pump. When fuel prices increase, transportation costs spike, which in turn drives up the cost of goods and services across the board. Essential goods, like food and everyday items, become more expensive to transport, leading to higher prices in markets and shops.
This puts more financial strain on Ghanaians already dealing with the rising cost of living. With fuel being a major input for almost every sector—from agriculture to retail—any increase hits both consumers and businesses hard.
Struggles for Small Businesses and Transportation
For small businesses, especially those that rely heavily on transportation, these price hikes could be crippling. Delivery services, taxi operators, and small market traders all face shrinking profit margins as fuel becomes more expensive.
Many will either be forced to raise prices, which could reduce demand, or absorb the costs, which might threaten their survival. Public transportation operators, who ferry thousands of Ghanaians daily, are already feeling the pinch. They are expected to increase fares, which will have a direct impact on commuters, many of whom rely on public transport as their only means of getting around.
Role of the Cedi Depreciation
The falling value of the cedi against the dollar is playing a huge part in why Ghanaians are paying more for fuel. Since Ghana imports most of its fuel, a weaker cedi means it costs more to buy fuel from abroad. So, even when global oil prices drop slightly, local prices can still rise due to the weak currency.
This creates a double blow—Ghanaians are dealing with both global market fluctuations and the negative effects of currency depreciation. Until the cedi stabilizes, it’s likely we will continue to see prices at the pump climb.
Global Oil Market and Supply Chain Disruptions
The global oil market has been highly volatile, with prices rising due to geopolitical tensions and disruptions in supply chains. Oil-producing nations have reduced output, which has pushed prices up. Countries like Ghana, which rely on imported fuel, are particularly vulnerable to these global shifts.
Every increase in the price of crude oil has a direct impact on what Ghanaians pay for fuel, and with no sign of the international market stabilizing soon, the pressure on local fuel prices is likely to continue.
The Ghanaian government has rolled out measures, like the “Gold for Oil” initiative, to try and keep fuel prices down by reducing foreign exchange pressures. While this has helped somewhat, it hasn’t been enough to fully counteract the sharp rise in global oil prices and the weakness of the cedi.
