Fuel prices are set to rise from Sunday, February 16, as the continued depreciation of the Ghana cedi exerts fresh pressure on petroleum import costs.
Industry sources indicate that the adjustment, expected at the pumps across the country, is largely driven by the weakening performance of the local currency against major international trading currencies, particularly the US dollar. Ghana imports a significant portion of its refined petroleum products, making pump prices highly sensitive to exchange rate fluctuations.
Exchange Rate Pressures Drive Up Landing Cost
The depreciation of the cedi has increased the cost of importing finished petroleum products, despite relatively stable international crude oil prices in recent weeks. Bulk Oil Distribution Companies (BDCs) pay for fuel imports in dollars, and as the cedi weakens, the local currency equivalent required to settle these transactions rises.
This development directly impacts the ex-pump price of petrol and diesel, as Oil Marketing Companies (OMCs) adjust their rates to reflect higher operational and replacement costs.
Consumers Brace for Higher Transport and Commodity Prices
The impending fuel price hike is expected to trigger a ripple effect across the economy. Transport operators may revise fares upward, while traders could also adjust prices of goods and services to absorb increased transportation and logistics costs.
Ghana has experienced similar cycles in the past, where currency depreciation has translated into higher fuel prices and broader inflationary pressures.
Calls for Stabilisation Measures
Economic analysts are urging policymakers to intensify efforts to stabilise the cedi and cushion consumers against persistent price volatility in the petroleum sector. Some have suggested strengthening foreign exchange inflows and tightening fiscal discipline to ease pressure on the local currency.
As the February 16 pricing window approaches, consumers are advised to monitor announcements from Oil Marketing Companies for specific adjustments at various filling stations nationwide.
