Fuel prices have reduced at the pumps as of June 16, 2025
A Senior Research Fellow and development economist at the Institute of Economic Research and Public Policy (IERPP), Dr Kwasi Nyame-Baafi, has noted that the recent increase in global oil prices will impact fuel prices in Ghana.
According to him, the gains Ghana recorded in recent months were largely due to developments in the global oil market—not domestic policy interventions.
His comments follow the government’s decision to postpone the implementation of the GH¢1 Energy Sector Levy, popularly referred to as the “Dumsor Tax,” citing global market volatility as the reason.
“When I pointed out on June 4, 2025, that the drop in fuel prices in Ghana was largely driven by falling global oil prices, not domestic policy decisions, I was vilified by some within the NDC,” he stated.
“When I warned that the GH¢1 ‘Dumsor Tax’ was flawed and would ultimately backfire once global oil prices rose again, I was labelled an ‘economist of doom.’ But what are we seeing today?
“The government has now been forced to suspend the Dumsor Levy due to rising global oil prices triggered by an exogenous shock, an event completely beyond our control. This surge will inevitably be reflected in local fuel prices. Only God knows how long it will last,” he was quoted by 3news.com.
Dr Nyame-Baafi also raised concerns about the recent appreciation of the Ghanaian cedi, calling it artificial and unsustainable.
He explained that the cedi’s performance is being propped up by temporary external factors, such as the recent spike in global gold prices, trends that may not persist.
“Let me repeat what I’ve said before: this artificial over-appreciation of the cedi is not sustainable. Forcing the Bank of Ghana to maintain an exchange rate of 10 cedis to the dollar is both costly and economically unwise. Let’s be honest—manipulating the exchange rate only delays the inevitable. It undermines export competitiveness, risks depleting our reserves, and leaves us more vulnerable to external shocks in the long term.
“High gold prices will not last forever,” he cautioned.
Meanwhile, Oil Marketing Companies (OMCs) have responded to the postponement of the levy by reducing prices of petroleum products at the pumps, effective today, June 16, 2025.
SSD/MA