Ghana’s economy is deeply affected by changes in global oil prices. When fuel prices rise, the cost of transportation, production, and everyday goods increases. This makes life more expensive for businesses and households, limiting their ability to spend and invest. While short-term price changes may not immediately impact the economy, long-term increases in fuel prices slow down economic growth and development.

One major reason for rising fuel prices in Ghana is inflation. When inflation is high, the cost of fuel also rises. Another factor is the exchange rate. As cedi weakens, importing fuel becomes more expensive, resulting in higher pump prices.

Global crude oil prices also influence fuel price fluctuations. Managing these factors effectively can help stabilize fuel prices and protect the economy.

Reducing effects of fuel hikes

To reduce the negative effects of high fuel prices, policymakers need to take strategic actions. One key step is to review and adjust fuel taxes. Levies like the Special Petroleum Tax and the Price Stabilization and Recovery Levy should be reconsidered to keep fuel prices affordable.

This is especially important during times of global price hikes when consumers and businesses struggle with higher costs.

Controlling inflation and exchange rates is another essential policy measure. The government must implement strong monetary policies to keep inflation low and maintain a stable cedi. Increasing foreign exchange reserves and promoting local production can help prevent extreme fuel price hikes caused by currency depreciation. These actions will create a more stable economy and reduce the burden on consumers.

The country should also establish fuel reserves to prepare for future price hikes. By storing fuel when prices are low, the government can release reserves during crises to prevent sudden price spikes. This strategy ensures fuel availability at stable prices, helping businesses and households plan better and avoid economic shocks.

Finding alternative fuel sources

A long-term solution is investing in alternative energy sources like solar, wind, and biofuels. Ghana depends heavily on imported petroleum, which makes the country vulnerable to price changes. By promoting renewable energy and encouraging private sector investments in clean energy, Ghana can reduce its reliance on fossil fuels and ensure a more sustainable and stable energy supply.

Finally, transparency in fuel pricing is essential. The government should clearly communicate how fuel prices are determined and involve key stakeholders in the decision-making process. This will prevent unnecessary price increases by suppliers and ensure that consumers pay a fair price.

As Ghana navigates global economic challenges, it is crucial to tackle fuel price issues with effective policies. By managing inflation, exchange rates, and pricing strategies, the country can reduce the negative effects of fuel price fluctuations. Investing in renewable energy and increasing transparency in the fuel market will further strengthen the economy.

Now is the time to take decisive action to protect Ghana’s economic growth and secure a stable future for all citizens.

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The writer is an upcoming Energy economist in London, United Kingdom.
E-mail: [email protected]
Contact: +233 57 397 8117

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The training focused on the ECG live debt dashboard

On Friday, February 28, 2025, the Electricity Company of Ghana’s (ECG) Revenue Assurance Information Technology team conducted a comprehensive training session for the Volta Region’s Priority Clients Management Executives (PCMEs), Debt Management Officers (DMOs), and the Revenue Management Officer at the Regional Conference Room.

The training focused on the ECG live debt dashboard, equipping participants with the necessary tools to effectively manage high-consuming customers and reduce outstanding debts across various districts in the region.

The objective was to enhance efficient debt management and ensure steady revenue generation.

Participants were encouraged to leverage the live debt dashboard to streamline their processes and improve collection efforts. Following the training, all participants are expected to eliminate zero collections in their debt management activities.

The Revenue Assurance Information Technology team, responsible for data engineering within ECG, remains committed to supporting staff in achieving these critical organizational goals for overall success and efficiency.

Watch the Labour minister at the National Economic Dialogue

The Minister of State in charge of Government Communication, Felix Kwakye Ofosu, has announced that this year’s 68th Independence Day celebrations will cost only a tenth of the amount spent last year.

The scaled-down event, set to take place at Jubilee House on March 6, reflects the government’s commitment to fiscal prudence while preserving the significance of the occasion.

Speaking on preparations, Kwakye Ofosu explained that the event has been significantly streamlined to reduce costs.

“In the past, there were 60 contingents made up of 60 men and women each. So we are talking close to 3,600 men and women and thousands of children who march.

“Now, everything has been scaled down to a little over 500 people. That includes both security personnel and schoolchildren who will be performing. This is to ensure that we do not incur the kind of costs we did in the past.

“I can reveal to you that the celebrations to be held here on Thursday will cost a tenth of what it took to host this event in Koforidua last year. That event cost GH₵15 million. What will be held here tomorrow will cost a tenth of that,” he stated.

Kwakye Ofosu further clarified that reducing the scale of the event does not diminish its importance.

“The scaled-down events in no way undermine the significance of the day. The Independence Day celebration is one that President Mahama takes very seriously. He believes it must be celebrated, but in a manner that allows us to make savings that can be redirected into other areas of expenditure,” he stated.

As part of the 2025 World Engineering Day Celebration, the KNUST Technology Consultancy Centre has launched its inaugural Engineering Design Competition.

The competition, themed “Circular Economy Champions: Challenging the Next Generation of West African Subregion Engineers to Turn Waste into Wealth through Design Competition,” aims to challenge engineering student associations in the West African sub-region to transform waste materials into valuable products, promoting innovative thinking and sustainable practices.

Professor Francis Davis, Director-General of TCC-CIMET, highlighted the benefits for participating students.

“By participating, you will gain invaluable experience, receive mentorship from industry leaders, and develop skills that will set you apart in the competitive world of engineering,” he said. “More importantly, your work will contribute to solving pressing challenges such as waste management, pollution, resource scarcity, and climate change, all while shaping the future of a sustainable Africa.”

He also called on industries and interested individuals to support the initiative. “We call on industry leaders, academics, and policymakers to support these young engineers,” he said. “We need the guidance and expertise of experienced professionals to mentor and collaborate with us so that we can make this happen.” He also invited them to join as partners.

Ing. Isaac Bedu, Registrar of the Engineering Council, encouraged students to ensure their solutions meet national and international engineering standards. “As we celebrate innovation, we must ensure our solutions meet national and international engineering standards,” he said. “The Engineering Council exists to uphold the integrity of our profession, ensuring every engineering solution deployed in Ghana is safe, reliable, and built to last.”

Speaking on behalf of the Chief Executive Officer of the Volta River Authority, Mr. Akim Tijani encouraged students to find practical solutions for Africa’s growing waste problem.

The competition is open to all Engineering Students’ Associations across the West African sub-region. To be eligible, students must form groups of 5 to 7 members, with each group including at least one female participant and at least one member from a different interdisciplinary program.

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Minister of Finance, Dr. Cassiel Ato Forson

The Minister of Finance, Cassiel Ato Forson, has assured that recommendations from the National Economic Dialogue will be addressed in the 2025 budget, which is set to be presented on March 11, 2025.

According to him, these suggestions align with the government’s economic recovery agenda and will help put Ghana on the path to stability.

Speaking during the plenary session at the dialogue on March 4, 2025, he stated, “Most of the presentations align with the first presentation I made. This clearly shows that we all understand the country’s challenges. What remains is the resolve to come together and fix them.”

He also highlighted that implementation remains a challenge, emphasising that the government needs the buy-in of citizens to effectively execute policies.

“We can only implement policies successfully if we gain the support of the citizens,” he noted.

Dr. Ato Forson urged Ghanaians to actively support the government’s efforts to reset the economy.

“Starting March 11, the government will introduce the 2025 Budget Statement and Economic Policy. Many of the concerns you’ve raised will be reflected in the budget.

“But don’t leave the government to do this alone. We urge you to help educate the public so they understand that the time has come to reset and reform our economy. We must do this together.”

The finance minister reaffirmed his commitment to implementing recommendations from the dialogue.

“The solutions are clear. We know the problems, and we know what needs to be done to fix them. It’s time to start implementing.

“I will wait for the final communique and use it as my guiding document when preparing the budget. I will present these recommendations to Cabinet for adoption and inclusion in the budget,” he concluded.

SSD/MA

2025 budget will address most of the concerns raised – Dr. Ato Forson