Kwadwo Nsafoah Poku, an Energy Analyst and member of Ghana’s New Patriotic Party (NPP), has cautioned that fuel prices in the country are likely to climb sharply in the next pricing window, a development that could put additional pressure on household budgets and drive inflation higher.
He described the potential increase as “exponential” in the coming months, attributing it to limited fuel supply and elevated crude oil costs.
“The shortage of the product in the market will push prices up because availability is scarce. On top of that, the high cost of crude oil matters since fuel prices are determined by replacement cost, not the price at which the product was initially purchased,” Mr. Nsafoah Poku explained.
He further noted that fuel marketers adjust their pricing based on the cost of replacing the product.
“In the next pricing window, you will notice a significant jump because everyone is now setting prices according to what it will cost to replace fuel in the coming weeks,” he added.
His warning comes amid escalating tensions in the Middle East, which have already contributed to instability in global fuel markets.