– Ghana’s total expenditure on petroleum product imports surged to GH¢51 billion in the 2025 fiscal year, according to fresh data released by the Ghana Statistical Service (GSS). This marks a significant increase from the previous year’s figure, underscoring the mounting pressure on the country’s foreign exchange reserves and the domestic cost of living.
The GSS’s 2025 Trade Summary Report, published this week, shows that refined petroleum—including petrol, diesel, and kerosene—accounted for nearly 28% of the nation’s total import bill, making it the single largest import category. The GH¢51 billion figure (approximately $3.3 billion at average 2025 exchange rates) represents a 14% year-on-year rise, driven largely by global crude oil price volatility and a weakened cedi against the major trading currencies.
Background: Why the Spike?
The 2025 import surge is rooted in several interconnected factors:
· Global Oil Prices: Brent crude averaged $82 per barrel in 2025, up from $76 in 2024, due to OPEC+ production cuts and geopolitical tensions in the Middle East. Ghana, which refines less than 20% of its domestic fuel needs, remains heavily reliant on imports from Europe and the Middle East.
· Currency Depreciation: The cedi lost roughly 18% of its value against the US dollar over the same period, inflating the local-currency cost of every litre imported.
· Demand Growth: Rising vehicle ownership and industrial activity, particularly in the mining and transport sectors, pushed consumption to an estimated 4.2 million metric tonnes—a 6% increase from 2024.
Economic Implications
The GH¢51 billion outflow has dealt a blow to Ghana’s balance of trade. The country’s merchandise trade deficit widened to GH¢32 billion in 2025, with fuel imports alone offsetting earnings from gold and cocoa exports. Economists warn that this trend could further deplete the nation’s gross international reserves, which stood at just $3.8 billion at year-end—barely 2.5 months of import cover.
Dr. Kwame Asare, a senior economist at the University of Ghana, noted: “Every cedi spent on fuel imports is a cedi not available for infrastructure, health, or education. Unless we accelerate the operationalisation of the Tema Oil Refinery’s expansion and invest in local upstream production, this bill will keep rising.”
Government Response
The Ministry of Finance has acknowledged the data but has downplayed immediate crisis fears. In a statement, Deputy Finance Minister Abena Osei-Asare said the government is “actively pursuing barter arrangements with oil-producing nations” and has launched a national energy efficiency campaign to curb demand. Meanwhile, the National Petroleum Authority (NPA) is reviewing a proposal to cap fuel marketer margins to stabilise pump prices, which averaged GH¢14.50 per litre in December 2025.
Public Reaction
For the average Ghanaian driver, the GSS figures translate into sticker shock at the pump. Accra-based taxi driver Emmanuel Kwarteng told this reporter: “We knew prices were high, but seeing the billions the state spends makes me wonder—why can’t we refine our own oil and keep that money here?” His sentiment echoes widespread frustration, with civil society groups calling for a parliamentary probe into the fuel importation regime.
Looking Ahead
The GSS warns that 2026 figures could surpass GH¢55 billion if global prices remain elevated and the cedi does not stabilise. However, a brighter note comes from the Jubilee Field’s new gas-to-power project, which is expected to reduce thermal power generation costs—though experts say that will only dent the fuel import bill marginally.
For now, Ghana remains tethered to the global oil market, and the GH¢51 billion price tag serves as a stark reminder of the country’s vulnerability. As the Finance Minister prepares to present the 2026 mid-year budget review next week, all eyes are on what measures—if any—will be taken to break this costly cycle.
