Energy Expert Calls for Long-Term Fuel Pricing Reforms

Energy expert and Executive Director of the Africa Sustainable Energy Centre, Ing. Justice Ohene-Akoto, has urged the Government of Ghana to pursue comprehensive, long-term reforms to the country’s fuel pricing system, arguing that sustainable policy measures are needed to shield consumers from recurring fluctuations in global oil prices.

His call comes amid recent adjustments to domestic fuel prices, which have been largely influenced by movements in international crude oil markets and exchange rate developments.

Speaking to the media, Ing. Ohene-Akoto welcomed the government’s decision to reduce diesel prices by GH¢2.00 per litre, describing the intervention as a timely measure that would provide immediate relief to businesses, commercial transport operators and households facing rising operating and living costs.

He said the reduction would help lower transportation and production costs in the short term, offering some respite to consumers and supporting economic activity.

Despite commending the initiative, the energy expert cautioned that temporary price reductions alone would not address the underlying structural challenges within Ghana’s petroleum pricing regime.

According to him, Ghana’s fuel pricing mechanism remains highly exposed to international crude oil price movements and exchange rate volatility, making domestic fuel prices vulnerable to external shocks beyond the country’s control.

Ing. Ohene-Akoto argued that the country should move away from what he described as a “reactionary” approach to fuel pricing and instead adopt reforms that provide greater stability, predictability and transparency.

Among the measures he proposed are the removal of what he considers unnecessary fuel levies, a comprehensive review of the petroleum pricing floor, and the permanent abolition of the GH¢1 fuel levy, which has attracted criticism from industry players and consumers.

He explained that reducing the tax burden on petroleum products would help lower pump prices, improve affordability for households and businesses, and enhance the competitiveness of Ghana’s energy sector.

The energy expert further noted that a transparent and predictable pricing framework would encourage greater private investment, strengthen public confidence in the downstream petroleum industry and contribute to broader economic growth.

He added that while global oil prices will always influence domestic fuel costs under Ghana’s deregulated petroleum pricing system, stronger structural reforms can reduce the severity of price fluctuations and improve market efficiency.

Ing. Ohene-Akoto therefore called on policymakers to use the current period to introduce lasting reforms that will strengthen the resilience of Ghana’s petroleum sector and create a more efficient, competitive and consumer-friendly fuel pricing regime.

He maintained that a sustainable pricing framework, backed by sound policy decisions and effective regulation, would better position Ghana to withstand future global energy market shocks while protecting consumers and supporting long-term economic stability.