Ghanaians face 512% higher fuel price increase than Francophone counterparts amid Iran war – Abonenga

Ghana has recorded a much sharper rise in fuel prices at the pump than the average increase recorded across the eight-member West African Economic and Monetary Union (WAEMU) amid the latest global energy shock linked to the Iran war, Economic Policy and Development Strategist Abonenga has said.

An analysis by Abonenga shows that Ghana’s ex-pump petrol price rose from GH¢10.24 per litre in February 2026, before the latest escalation in the global energy crisis, to GH¢16.00 in the second September pricing window.

The increase of GH¢5.76 represents a 56.3 percent rise.

Diesel prices also climbed from GH¢11.34 to GH¢16.77 per litre during the same period, reflecting an increase of GH¢5.43 or 47.9 percent.

The analysis, which draws on the National Petroleum Authority’s (NPA) price-floor series, compares Ghana’s fuel price movements with those in Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

The eight countries operate under a common monetary framework administered by the Central Bank of West African States (BCEAO).

According to Abonenga’s assessment, petrol prices across the WAEMU region increased by an average of 9.2 percent, while diesel prices rose by 13.7 percent over the period under review.

Based on those figures, he calculated that Ghana’s petrol price increase was approximately 512 percent higher than the WAEMU average, while the increase in diesel prices was about 250 percent higher.

He said the comparison highlights the different approaches governments have adopted in passing international energy costs on to consumers.

“The global oil shock may be common, but the way governments choose to transmit that shock to households is not,” Abonenga said.

He cited Burkina Faso as an example of a country that has used regulated prices and subsidies to cushion consumers against international fuel price pressures.

Although Burkina Faso does not produce crude oil and relies on imported petroleum products, Abonenga said petrol prices in the country recorded no increase during the period examined.

Niger, he said, offers another example of an administered pricing system, with its regulated fuel prices remaining unchanged since October 2024 despite the latest global energy shock.

Abonenga, however, noted that keeping pump prices unchanged does not eliminate the cost associated with higher international oil prices.

He said governments can absorb part of the impact through measures such as fuel subsidies, effectively shifting some of the burden from consumers to the state.

For him, the comparison raises questions about how the costs of external energy shocks should be distributed rather than whether the international shock itself exists.

“When an international energy shock arrives, how much of it should the consumer be required to absorb immediately, and how much should the state cushion?” he asked.

He said some WAEMU countries have relied on regulated petroleum prices, subsidies and, in some instances, long-term pre-purchased fixed-price oil contracts to limit the extent to which global price changes reach consumers.

Abonenga acknowledged, however, that such measures can create additional pressure on government finances.

He also pointed to differences between Ghana’s monetary arrangements and those of WAEMU countries. Ghana operates its own monetary system under the Bank of Ghana, while the eight WAEMU members share a common monetary framework under the BCEAO.

He cautioned against linking the differences in fuel price movements solely to monetary policy arrangements, stressing that several other factors influence prices at the pump.

“The pricing regime, subsidies, import contracts, taxation and exchange-rate arrangements all matter,” he said.

Abonenga said the broader policy issue emerging from the comparison concerns who ultimately bears the cost when international energy prices rise.

“The bigger lesson from the data is straightforward: the global oil shock may be common, but the way governments choose to transmit that shock to households is not,” he said.

He added that policymakers must consider whether higher energy costs should be borne mainly by consumers, absorbed by government or shared between the two.

Abonenga is an Economic Policy and Development Strategist, Social Commentator and Political Activist.