I wish to register my deep concern over the recent announcement by the Chamber of Oil Marketing Companies (COMAC) regarding the upward adjustment in fuel prices effective today, July 1, 2025. Under this adjustment, the price of petrol has increased by 2%, while diesel has seen a sharper jump of 5%.
Though this development is attributed to global oil price trends and currency exchange dynamics, I believe the timing and scale of these hikes are not only unjustifiable but also socially insensitive.
The most immediate consequence of this increase is the added cost of living it imposes on ordinary Ghanaians. Petrol and diesel are not luxury items; they are central to the everyday functioning of households, transport systems, and economic activities.
Even a 2% increase in petrol may seem marginal on paper, but for the average Ghanaian who relies on commercial vehicles daily, this translates into increased transport fares, higher food prices, and an overall spike in the cost of essential goods and services. It is the poor and working-class citizens who will bear the brunt of these increases.
Moreover, the decision to raise diesel prices by 5% is particularly troubling due to its wider economic implications. Diesel fuels the majority of commercial transportation, including goods delivery trucks, farming equipment, and public buses.
A hike of this magnitude will directly impact the cost of transporting goods across the country, inevitably triggering a ripple effect on prices in the market. This inflationary pressure undermines the government’s efforts to stabilise the economy and fight poverty.
Another critical issue is the complete lack of cushioning measures to protect vulnerable groups. There is no indication that the government or COMAC has considered mitigation strategies such as targeted subsidies or gradual, phased increases. This blanket adjustment treats all consumers the same, ignoring the fact that many households are already struggling to keep up with utility bills, rent, food, and other rising expenses.
At the very least, a responsible approach would have included provisions to shield public transportation operators, small-scale farmers, and low-income earners from immediate hardship.
Equally concerning is the persistent lack of transparency surrounding how fuel prices are determined and adjusted. Ghanaians deserve to know the full breakdown of taxes, levies, and international benchmarks that go into the pricing at the pump. Without clear communication and public engagement, these price hikes come across as arbitrary, and public trust in fuel sector regulation continues to erode.
Finally, I must highlight the missed opportunity to consider smarter, less regressive policy alternatives. In past periods of volatility, the government has suspended certain levies to protect citizens. Why was such an approach not taken now? Where are the strategic reserves that are meant to shield us from sharp price shocks? Policy tools exist, but they must be used with foresight and compassion.
In light of the above, I urge the government and relevant regulatory bodies to reconsider the current approach to fuel pricing. Immediate relief measures must be introduced for the most affected sectors. A transparent and predictable pricing framework must be established and communicated to the public. Above all, the well-being of the Ghanaian people must be placed above profit margins and technical justifications.
At a time when hope is scarce and economic strain is widespread, this price hike sends the wrong message. It is time for leadership that listens, empathises, and acts in the true interest of the people.
By: Michael Addy, a Policy Analyst
