Rising Fuel Prices In Ghana
by Vennisa Owusu-Barfi
The recent invasion of Ukraine by Russia sent shockwaves throughout the media and the state of world politics itself. But for the 30 million Ghanaians living 5000 km (about 3106.86 mi) from the crisis, the profound effects on their way of life were unprecedented.
Russia provides 10% of the world’s supply of petroleum1 and following the recent ban on imports of Russian energy by the USA and other countries, there have been drastic repercussions for the economies of many countries.
OIL PRICES HAVE SKYROCKETED
With global oil prices skyrocketing, developing countries like Ghana face the prospect of further weakening of an economy already exacerbated by the pandemic. Just between February 14, 2022, to March 21, 2022, fuel prices have increased by over 20% and are projected to keep rising as the war continues.2 For Ghanaians already experiencing the unprecedented economic and social changes due to COVID-19, this comes as a bitter pill to swallow.
@gyaigyimii jokingly reflects on the rising fuel prices by suggesting a change in his daily life and commute.
EFFECT ON GHANAIANS
To gain a better understanding of the problem, we need to paint a picture of the extensive role fuel plays in the life of the average Ghanaian. When fuel prices skyrocket, public transport drivers or trotro drivers (as they are called in Ghana), need to raise fare prices to compensate for the extra cost. In Accra for example, 70% of the population relies on public transport for their day-to-day activities3; thus, the extra cost is directly transferred to them. This then trickles down to other sectors of the economy and the personal lives of the people with a projected rise in the prices of other goods and eventually, the standard of living itself.
THE WAY FORWARD
So why is this issue particularly important to us? Is Ghana unique in the current crisis or is it just another country unwillingly caught up in a geopolitical catastrophe?
In this tweet, we see that Ghanaians may be aware that the current situation is a more global issue beyond the control of the Ghanaian government.
As Ghana and other West African countries slowly recover from the economic shock due to the COVID-19 and current troubles brewing on the horizon, we hope to return much stronger and continue our journey towards progress and development.
Sources:
“Why Russian Oil and Gas Matter to the Global Economy.” The New York Times, The New York Times, 10 Mar. 2022, https://www.nytimes.com/explain/2022/03/09/business/gas-oil-russia-ukraine.
“Ghana Gasoline Prices, 21-Mar-2022.” GlobalPetrolPrices.com, https://www.globalpetrolprices.com/Ghana/gasoline_prices/.
“Ghana Priorities: Urban Transportation (Bus).” Ghana Priorities: Urban Transportation (Bus) | Copenhagen Consensus Center, https://www.copenhagenconsensus.com/publication/ghana-priorities-urban-transportation-bus.
Latina, Published by: Prensa. “Fuel Prices Increase in South Africa - Prensa Latina.” Prensa Latina - Latin American News Agency, 5 Aug. 2021, https://www.plenglish.com/news/2021/08/05/fuel-prices-increase-in-south-africa/.