Cycling to work may soon be, if not already, an imperative as the consistent jump in fuel prices in the country since September has secured Ghana a top spot on the list of African countries with very expensive fuel prices.
With an African average of GH¢ 5.978 ($0.98) per litre, fuel in Ghana is currently hovering around GH¢ 7 ($1.142) per litre.
Although Ghana’s price is still far lower than the global average of GH¢ 9.28 ($1.5), it comes 11th on the table of 44 African countries with the most expensive fuel.
This is according to data analyzed from Global Petrol Prices, an open-source platform that gathers data on the cost of different fuels across the world.
The data gathered from official government sources, regulatory agencies and petroleum companies show that on the continent of Africa, fuel is least expensive in Algeria, selling at GH¢ 1.22 ($0.20) per litre, while Zimbabwe holds the unenviable title as the country with the highest fuel price selling at GH¢9.76 ($1.6) per litre. West Africa
In the West African sub-region, Ghana is only third behind Cape Verde and Senegal having the highest fuel price.
Understandably, Nigeria, an oil-producing country has the lowest price in the sub-region followed by Sierra Leone and Benin per the weekly data as of 15th November 2021.
Fuel prices have stayed a topical issue in Ghana due to its direct impact and cascading effect on almost every aspect of the Ghanaian economy.
With an active and fast-expanding transport sector amidst a boom in motorized delivery services, the prices of goods and services are almost immediately affected by the slightest change in the price of fuel.
The Ghana Private Roads of Transport Union (GPRTU), the country’s largest union of commercial drivers is considering an increase in transport fares pending the conclusion of negotiations with the government.
The last formal hike in transport fares was by a rate of 13% in June 2021.
The price buildup of petroleum products in Ghana is made up of almost 40% taxes and levies, a situation some analysts have bemoaned.
The Chamber of Petroleum Consumers (COPEC) says there are about 11 taxes, levies and margins on every litre of fuel purchased and this totals about GH¢2.43.
This includes the most recent taxes; an additional 10 pesewas as Sanitation and Pollution Levy (SPL) and 20 pesewas as Energy Sector Recovery Levy per litre of fuel.
If the GPRTU’s negotiations are completed, transport fares are expected to increase, just as energy sector analysts expect the price of fuel at the various pumps to go up ahead of Christmas.
Source: Jonas Nyabor
