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To mitigate the hardship on Ghanaians imposed by the increasing rate of fuel prices, the government has announced a GHp15 cut in the margins of the price build-up for fuel for the next three months.

Finance Minister, Ken Ofori-Atta addressing the press on measures to fix the economy said: "the rising prices of fuel at the pumps is influenced largely by the rising crude oil prices on the international market and the exchange rate depreciation".

Though the rise in crude oil prices should have been to our benefit on net basis, Ghana’s import of petroleum products amounts to 5.2 times the value of the proceeds from its crude oil exports. In 2022, we exported $3,947.70 million of which Ghana’s portion was $513 million.

However, he said, "we imported $2,719.00 of crude oil and finished products. The purported windfall gain in foreign exchange is a mirage. From January to date, the average ex-pump price of diesel and petrol have increased by 57% and 45% respectively".

Unlike in other countries where the hike in crude oil prices and exchange rate volatility are leading to shortages in supply of petroleum products, government is implementing measures to guarantee a constant supply of petroleum products.

"To mitigate the impact of the rising price of petroleum products at the pump, for the next three months, government has decided to reduce margins in the petroleum price build-up by a total of 15 pesewas per litre with effect from 1st April".

The details are as follows:

BOST margin reduced by 2 pesewas per litre

Unified Petroleum Pricing Fund (UPPF) margin reduced by 9 pesewas per litre

Fuel Marking Margin (FMM) reduced by 1 pesewa per litre

Primary Distribution Margin (PDM) reduced by 3 pesewas per litre

Ladies and gentlemen, these reductions in margins are expected to reduce prices of petrol by 1.6% and diesel by 1.4%.

We anticipate that the measures taken to strengthen the currency will help further stabilize the prices at the pump.