Global Tensions, Local Pain: How the Middle East Conflict is Driving Fuel Prices Up in Ghana

By Maame Efua Kwaduah

The ongoing conflict in the Middle East is beginning to affect global oil supply, leading to an increase in fuel prices across many countries, including Ghana.
The situation, which involves tensions among the United States, Israel and Iran, is already putting pressure on the global oil market, with the effects now being felt by drivers, businesses and consumers.
Iran and the Middle East region remain major producers and suppliers of oil to the global market.
The region also controls some of the major oil transportation routes used to ship crude oil to different parts of the world.
With the conflict affecting production areas and transportation routes, oil supply on the world market is reducing, forcing prices to go up due to high demand and limited supply.
Some Oil Marketing Companies like GOIL PLC and Star Oil have already increased their prices with others expected to follow for the April Pricing window.
Speaking to The New Finder, some drivers who said the increase in fuel prices came as no surprise because Ghana depends heavily on imported refined fuel, making the country vulnerable to global events.
One commercial driver said he anticipated the increment the moment the war began.
“Once the war started, I knew that along the line fuel prices would increase because Ghana does not make full use of the oil we have. So we still depend on other countries for fuel and when there is a problem in those countries, it affects us,” he said.
According to the drivers, the increase in fuel prices automatically affects transport fares, which then affects the prices of goods and services on the market.
“In Ghana, when fuel prices go up, everything goes up. When we buy fuel at a higher price, we also have to increase transport fares. When transport fares go up, the market woman also increases the price of food. So in the end, everything becomes expensive and life becomes difficult,” another driver explained.
The drivers say the situation is already affecting their daily income, as they spend more on fuel while passengers complain about transport fare increments. They warn that if the situation continues, transport fares may increase further in the coming months.
Despite the frustrations, some drivers believe the situation is largely caused by global factors and not entirely the fault of government, since the world market determines fuel prices. They explain that if the war ends and oil supply increases again, prices will reduce.
However, they believe Ghana must learn from the situation and invest in long-term solutions that will reduce the country’s dependence on imported fuel.
One of the major suggestions from the drivers is for government to improve the railway system and expand it to serve a large percentage of the population.
According to them, an efficient railway system will reduce pressure on road transport and fuel consumption.
They also called for more investment in public transport systems such as Metro Mass Transit and other high-capacity buses so that people will have reliable alternatives to private cars.
“If government improves the railway and increases the number of buses, people will not depend too much on private cars.
In times like this when fuel prices go up, it will reduce the pressure on fuel and help the country,” one driver suggested.
They also questioned why a country that produces oil still depends heavily on other countries for refined fuel and called on government to improve the country’s oil refining capacity.
“A country that has its own oil but still depends on other countries will always suffer when world prices go up. So the question is, what are we doing as a country?” one driver asked.
For now, drivers say Ghanaians must prepare for difficult times as fuel price increases continue to affect transportation, businesses and the general cost of living.
However, they remain hopeful that if tensions in the Middle East reduce and oil production returns to normal, fuel prices may eventually go down.
Until then, many say the only option is to adjust and find ways to manage the increasing cost of living, as global events continue to have local consequences.
“These are global issues, but the effects are on us here in Ghana. When fuel prices go up, everything goes up,” a driver noted.
Economic Analyst, Emmanuel Boateng has warned that rising global oil prices could quickly translate into higher inflation in Ghana due to the country’s heavy reliance on imported fuel.
According to him, fuel price increases are usually felt almost immediately in the local economy, with transport operators often being the first to adjust fares. He explained that once transport fares go up, the cost of moving goods, especially food, also increases, forcing traders to pass on the additional cost to consumers. This, he noted, creates a chain reaction that pushes up prices across multiple sectors and increases the overall cost of living.
He cautioned that Ghana remains vulnerable to such external shocks because of its dependence on imported fuel and exposure to global economic developments. He explained that global price changes, shipping disruptions and economic downturns could easily affect the country when the economic structure is not strong enough to absorb such shocks.
Mr. Boateng explained that such developments should serve as a lesson for Ghana to build a stronger and more resilient economy capable of withstanding external shocks.
He emphasised that tackling corruption and strengthening institutions are key steps toward building a robust economic system that can better manage the effects of global changes.
“If your economy is not strong enough, what comes from outside can easily break you. That is why strengthening the economy is very crucial,” he added
He therefore stressed the need for Ghana to build a stronger and more resilient economy to withstand external pressures. According to him, this can be achieved through strong economic policies, tackling corruption, strengthening state institutions and implementing long-term development plans.
He added that Ghana needs a clear and consistent development agenda that focuses on economic resilience, sustainable growth and national development, noting that with the right policies and commitment, the country can better withstand global uncertainties and improve the livelihoods of its citizens.