Fuel prices especially for petroleum products like petrol, diesel, and liquefied petroleum gas (LPG) are among the most sensitive economic issues for Ghanaians. These prices directly affect transport costs, the cost of goods, and everyday living expenses. Over recent years, shifts in fuel prices have been influenced by exchange rates (especially the Ghana cedi vs. the US dollar), government policies, global oil market conditions, and tax and levy structures.
In Ghana’s recent political context, the NPP government (previously led by President Nana Akufo-Addo and Vice-President Mahamudu Bawumia) was widely criticized for persistent fuel price increases. By contrast, the current NDC administration (under President John Dramani Mahama and Finance Minister Dr. Cassiel Ato Forson) has seen periods of declining fuel prices, prompting debate about who deserves credit and why the changes occurred.
Why Prices Increased Under the NPP
Depreciation of the Ghanaian Cedi
The primary reason fuel prices rose under the NPP was the weaker cedi against the US dollar. Ghana imports almost all refined petroleum products, and these are priced in dollars. When the cedi depreciates meaning it takes more cedis to buy a dollar the cost of importing fuel rises. These higher costs are passed on to consumers at the pump in the form of higher prices.
Ghana Business News
Global Oil Price Fluctuations
Even beyond exchange rates, international crude oil prices vary. When global prices rise, importing fuel becomes more expensive. As a net importer, Ghana’s domestic pump prices often move in line with global oil price changes.
Levies and Taxes
Fuel price increases were also influenced by government levies and taxes introduced during the NPP era. These include the Energy Sector Levy, sanitation levies, and others applied to fuel products costs which eventually increased the price consumers pay. Critics, including the NDC at the time, argued these levies made fuels more expensive.
Structural Pricing Policies
Even after deregulation of the petroleum sector, the National Petroleum Authority (NPA) has maintained price floors a minimum price policy intended to stabilize the sector but which critics say can keep prices artificially high.
What Changed Under the NDC Government
Strengthening of the Ghanaian Cedi
One of the biggest shifts credited under the NDC administration has been the appreciation of the Ghanaian cedi against the US dollar. A stronger cedi lowers the domestic cost of fuel imports because fewer cedis are needed to buy the same amount of dollars to pay for imported petroleum products. As a result, fuel prices at the pump have declined.
For example, reports show multiple rounds of price reductions in 2025 as the cedi strengthened and international oil prices also eased, allowing petrol and diesel prices to trend downward.
Falling Global Oil Prices
Worldwide oil markets experienced periods of excess supply and lower crude prices, which also helped ease domestic fuel prices. Even though the government does not control global prices, these external conditions contributed to lower fuel costs.
Regulatory Adjustments and Fuel Pricing Windows
Under NDC administration and through the NPA, regular fuel price reviews and adjustments particularly downward have reflected these changing market conditions. This has brought relief to consumers after years of steady rises.
Political Debate: Who Gets Credit?
The situation has become highly political:
Supporters of the NDC say that improved economic management under the current government especially stabilizing the cedi has reduced fuel prices and alleviated some economic pressures. They see this as a reversal of the hardships experienced under the NPP.
NPP leaders argue that global and external factors, not domestic policy changes alone, explain the lower fuel prices and stronger cedi. Some within the party have challenged claims that the NDC’s actions are the direct cause of these economic changes.
This tug-of-war over attribution reflects deeper political competition in Ghana, where control of economic narratives can influence public opinion and electoral outcomes.
Conclusion
Fuel prices in Ghana are shaped by complex interactions between currency values, international oil markets, taxation and levy policy, and regulatory frameworks. Under the NPP government, a weak cedi and increasing levies contributed to frequent fuel price increases. Under the NDC administration, a stronger cedi and lower global oil prices have coincided with downward adjustments in fuel costs.
Whether these changes are due to domestic policy, global economic shifts, or a combination of both remains a subject of political debate. What is clear is that fuel cost.
Mustapha Bature Sallama
Medical Science communicator.
Private Investigator and Criminal
Investigation and Intelligence Analysis,
International Conflict Management and Peace Building. Alumni Gandhi Global Academy United States Institute of Peace.
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