Fuel Prices Surge in Ghana Amid Global Tensions as GOIL Reduces Debt and Navigates Sourcing Challenges

Ghana’s petroleum sector is facing significant volatility as several Oil Marketing Companies (OMCs) have implemented early fuel price hikes ahead of the March 16 pricing window. Star Oil has adjusted its rates, with petrol now selling at approximately GH¢12.49 and diesel reaching as high as GH¢15.99 in some locations. GOIL PLC has also moved its prices, setting petrol at GH¢11.57 and diesel at GH¢14.35. These increases are primarily driven by a sharp rise in global crude oil prices, which have climbed from $71.41 to over $86 per barrel due to escalating geopolitical tensions in the Middle East and disruptions in critical oil transit routes like the Strait of Hormuz. The price surge triggered a 50% spike in weekend demand as consumers rushed to fill tanks, leading to temporary stock shortages at various service stations.

Amidst these market pressures, GOIL PLC’s CEO, Edward Bawa, has provided a comprehensive update on the state-owned company’s financial health and operational strategy. Bawa revealed that upon assuming leadership in 2025, he inherited a staggering $110 million debt owed to BP, which had previously hampered the company’s competitiveness. Through strategic negotiations with banks and leveraging favorable exchange rates, GOIL has successfully reduced this liability to approximately $30 million. Furthermore, Bawa noted that while GOIL seeks to prioritize domestic products, the company is currently capped at sourcing only 30% of its petroleum locally from the Tema and Sentuo Oil Refineries due to limited national refining capacity. He emphasized that although local fuel is more competitively priced than imports, increasing this share is impossible without significant investments in domestic infrastructure.

The domestic economic impact of these rising costs has prompted urgent calls for government intervention. The Institute for Energy Security (IES) has urged the government to suspend the Price Stabilisation and Recovery Levy to provide immediate relief to consumers. Meanwhile, the Ghana Private Road Transport Union (GPRTU) is monitoring the situation closely; while the union has not yet sanctioned an official fare increase, it warned that a technical review of operational costs—including fuel, spare parts, and maintenance—will be necessary if the upward trend continues. Analysts warn that if global prices remain high, local fuel could potentially exceed GH¢16 per litre, further exacerbating the cost of living and putting additional pressure on the Cedi.

Looking forward, stakeholders are emphasizing the need for long-term energy security to insulate Ghana from external shocks. Recommendations include the expansion of strategic petroleum reserves, increased investment in renewable energy, and providing Bulk Distribution Companies with better access to foreign exchange. These themes are expected to take center stage at the upcoming 2026 Ghana International Petroleum Conference (GhiPCon), scheduled for July 16–17. The conference will focus on building a resilient downstream sector through regulatory reforms and innovation, aiming to reduce the country’s heavy reliance on imported finished products and stabilize the energy market for the future.