The government of Ghana has moved to reassure Ghanaians that local fuel prices are expected to remain stable in the near term following the easing of geopolitical tensions between Israel and Iran.
The positive outlook comes as crude oil prices recede after weeks of volatility sparked by military conflict in the Middle East. Speaking to the media, Dr. Yussif Sulemana, Technical Advisor at the Ministry and Technical Lead of the Gas Processing Plant II Implementation Committee, confirmed that the government does not anticipate any immediate increase in petroleum prices at the pump.
“Every government will not want pump prices to go up because that has a direct impact on inflation figures… goods and services, transportation — they will all go up.
“That was a huge relief, and I think it will help the parties themselves know that no one is going to be a winner.”
Dr. Yussif Sulemana, Technical Advisor at the Ministry and Technical Lead of the GPP II Implementation Committee
Amid heightened fears of global oil supply disruptions earlier in June, benchmark crude prices climbed close to $80 per barrel, raising concerns in fuel-import-dependent economies like Ghana.
Analysts warned that a prolonged standoff — particularly involving the strategic Strait of Hormuz, a key transit route for about 20% of global oil shipments — could spark severe price shocks across developing markets.
Dr. Sulemana welcomed the recent de-escalation and pointed out that both regional stability and market predictability are crucial for Ghana’s energy sector performance.
“Once I believe cool heads have prevailed, and actors see that this is the way to go, prices have now receded to pre-engagement levels in terms of the war.
“That is how come the prices have dropped, and I believe the price will stay.”
Dr. Yussif Sulemana, Technical Advisor at the Ministry and Technical Lead of the GPP II Implementation Committee
The fall in crude prices is likely to have a stabilising effect on both Ghana’s upstream oil production and downstream petroleum distribution systems, according to Dr. Sulemana.
“If it stays, I think it is good for our upstream and downstream.
“Stability in oil markets helps our importers manage their forex exposure, and on the upstream side, consistent prices support production planning.”
Dr. Yussif Sulemana, Technical Advisor at the Ministry and Technical Lead of the GPP II Implementation Committee
Ghana’s oil and gas industry is a major contributor to national revenue and energy supply. The country continues to rely heavily on imported refined fuels, making it sensitive to international pricing dynamics.
Any fluctuation in global oil benchmarks can have a cascading impact on local inflation, public transportation fares, and the general cost of living.
Government Prioritising Consumer Protection and Price Stability
With inflation control a key policy priority, the government is closely monitoring the situation to ensure that recent relief at the pumps is not prematurely reversed.
In May and early June, Ghanaian consumers benefited from slight reductions in fuel prices due to the appreciation of the cedi and the suspension of the proposed GHS 1 energy sector levy.
However, there had been growing anxiety that sustained Middle East tensions would offset these gains and trigger price hikes in the July pricing window.
“Government is committed to managing the price environment and ensuring that unnecessary pressures are not passed on to consumers.
“Stability in the international arena plays a critical role in allowing us to plan better and protect livelihoods.”
Dr. Yussif Sulemana, Technical Advisor at the Ministry and Technical Lead of the GPP II Implementation Committee
Beyond petroleum pricing, geopolitical calm also supports Ghana’s broader energy transformation strategy, including its natural gas agenda and infrastructure development goals.
Dr. Sulemana, who also plays a key role in the rollout of the Gas Processing Plant II (GPP II) project, highlighted that stable oil prices provide the fiscal space needed to support ongoing infrastructure investments without triggering price distortions or budgetary shocks.
While the ceasefire between Israel and Iran has helped cool oil markets, analysts caution that the situation remains fluid and that long-term price stability will depend on the durability of diplomatic engagement and the resolution of underlying tensions.
For now, Ghana’s energy policymakers appear cautiously optimistic. The government’s focus remains fixed on balancing sector sustainability with affordability for ordinary citizens.
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