Fitch Ratings says the Ghanaian government may extend its temporary fuel relief measures beyond May 16, 2026, if the cost remains manageable and can be offset through savings in other areas.
The measures, introduced on April 16, were aimed at shielding consumers from rising global crude oil prices. Under the intervention, government absorbs GH¢2 per litre on diesel and GH¢0.36 per litre on petrol to help stabilise transport costs and ease pressure on households and businesses.
According to Fitch, extending the policy could help contain inflation as global oil prices continue to rise. Brent crude has climbed to about US$105 per barrel amid renewed geopolitical tensions involving the United States and Iran, raising concerns about further fuel price increases in Ghana.
Industry projections indicate petrol prices could rise slightly from May 16, while diesel and LPG prices may record sharper increases if international market pressures persist.
Despite inflation risks, Fitch upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating from ‘B-’ to ‘B’ with a Positive Outlook. The agency expects Ghana’s economy to remain resilient, projecting average GDP growth of 5 percent through 2027, supported by gold exports, easing inflation, stronger consumer confidence and lower borrowing costs.
Fitch also forecasts Ghana’s public debt will decline to 46 percent of GDP by 2027, while the Bank of Ghana is expected to maintain a cautious monetary policy stance to prevent inflation from rising further.
Source: businesspostonline
