Fuel Prices in Ghana: Comparing Akufo-Addo and Mahama's Records and What It Means for Consumers

ACCRA, Ghana — Fuel prices remain one of the most closely watched economic indicators in Ghana, affecting transportation, food prices, business operations, and the overall cost of living.

Following President John Dramani Mahama's recent announcement of a GHS2 per litre reduction in the regulatory margin on diesel, many Ghanaians have renewed comparisons between fuel prices under his administration and those of former President Nana Addo Dankwa Akufo-Addo.

While political debates often focus on who presided over lower or higher fuel prices, economists argue that the issue is far more complex. Ghana's fuel prices are influenced by global crude oil prices, exchange rate movements, taxes and levies, transportation costs, and the country's deregulated petroleum pricing system.

Fuel Prices Under Mahama's First Administration

During President Mahama's first term in office (2012–2017), fuel prices increased gradually in response to international oil market trends and the depreciation of the Ghana cedi.

By the end of his administration in January 2017, pump prices were higher than when he assumed office. However, they remained significantly lower in nominal terms than the prices Ghanaians have experienced in recent years.

Fuel Prices During Akufo-Addo's Administration

Former President Akufo-Addo's administration (2017–2025) witnessed some of the highest fuel prices in Ghana's history.

The sharp increases were driven largely by the economic effects of the COVID-19 pandemic, disruptions in global energy supplies following the Russia–Ukraine war, rising international crude oil prices, and the depreciation of the Ghana cedi.

At different periods, petrol and diesel prices exceeded GHS15 per litre, leading to higher transport fares, increased production costs, and a significant rise in the cost of living across the country.

Mahama's Current Approach

Since returning to office, President Mahama has inherited a fuel market characterised by high pump prices and continued global uncertainty.

Instead of introducing permanent price controls, his government has adopted targeted interventions designed to provide temporary relief to consumers.

The latest initiative reduces the regulatory margin on diesel by GHS2 per litre for one month beginning August 4, 2026.

According to the government, the measure is intended to prevent transport fare increases, reduce inflationary pressures, support businesses, and cushion households from rising living costs.

Why Fuel Prices Continue to Rise

Although governments can adjust taxes, levies, and regulatory margins, they do not directly determine pump prices.

Under Ghana's deregulated petroleum pricing system, fuel prices are largely influenced by:

• International crude oil prices.
• The exchange rate between the Ghana cedi and the US dollar.
• Taxes and statutory levies.
• Distribution and transportation costs.
• Market competition among oil marketing companies.

These factors mean that global economic developments often have a direct impact on prices at Ghanaian fuel stations.

What the Comparison Means

A comparison of the two administrations shows that fuel prices were lower in absolute cedi terms during Mahama's first presidency than during Akufo-Addo's administration.

However, the two periods were shaped by different economic circumstances and global market conditions.

While Akufo-Addo's government faced major international crises that pushed fuel prices to record highs, Mahama's current administration is focusing on temporary policy measures to reduce the burden on consumers without reversing Ghana's deregulated pricing framework.

Ultimately, the success of these interventions will depend on whether reductions in fuel-related costs translate into lower transport fares, reduced business expenses, slower inflation, and improved living standards for ordinary Ghanaians.

Conclusion

Fuel prices remain a critical issue for Ghana's economy and continue to influence inflation, transportation costs, and household spending.

As global energy markets evolve, policymakers will be expected to balance consumer relief with economic sustainability while ensuring that any government interventions deliver meaningful benefits to citizens.

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