Petroleum Gymnastics
By Agya Yaw Brefo · 2 October 2026 · Economy & the Cedi
The price of petroleum was deregulated in 2001 in the first budget of John Agyekum Kuffour . Before that time , the finance ministers had the duty of announcing how much petroleum products were going to be sold throughout the country. Deregulation brought regulators like the PURC , Energy Commission , brought more competitors in the oil distribution space , more unionised actors-BIDEC, COMAC, CIBOD etc . The government had a lot of goodwill and it got this action right at the correct time . A lot of public education went into the roll out .By 2008 petroleum pricing had almost settled and was adjusted in accordance with the exchange rate, global brent crude prices and a little margin for the actors-distributors etc. No matter the grumbling the law worked perfectly .PURC kept modifying prices of elctricity and water in accordance with the underlying legislation . Based on the above , it is true that when a government manages the currency well, the price of energy (petrol, electricityetc) stabilises. Petrol prices affect transport fares and has a pass through effect on general price levels . Unfortunately ,too, petrol prices have become an easy source of Indirect tax revenue for governments and the NPP and NDC have taken turns to impose varying levies on petroleum . We have had environmental taxes, customs excies taxes and now a "dumsor levy" on the fuel we use . Ghana is a net importer of crude and therefore the discovery and subsequent production of oil has not changed the dynamics of fuel trading in the economy . We are very much impacted by the global price of crude and the USD/GHS rate, two factors that combine to make nonsense of all the local managment that occurs in the space.Anytime there is war and uncertainty that affects crude supplies and the price goes up , we have to prepare for an upward adjustment in prices , just as when the exchange rate worsens. Now let me digress and tell you about two very good friends , Nwansena and Odwan, mind you these are humans ooo,not animals. Odwan was carrying Nwansena on the back because Nwansena was physically challenged . They reached a town near Kote ye aboa and Odwan exclaimed " Ei there are very beautiful women in this town ooo.Odwan was visually impaired and was using Nwansena's GPS to embark on their journey . Nwansena asked "But you cannot see, how do you say there are beautiful women in this town ? . Odwan said " I felt something at my back"and I knew you were looking at beautiful women " So back to petroleum prices . Any time the price of petrol is adjusted upward or downward , even the unlettered Ghanaian knows one of three things have happened -global prices have changed or cedi has depreciated/improved or a tax has been levied or removed . This appeared simple and some journalists have taken the pains to understand this pricing regime and helped explain these matters . Life was beautiful until Russia and Ukraine started fighting over land for growing beans and the global prices of crude went up . Due to "not so prudent" management of the currency ,the cedi had depreciated and the combined effect of these affected the prices of fuel . Some people in opposition said that Ghana was too far away from Iran to be affected by a war in Ukraine and that the high prices of petroleum was down to mismanagement of the currency and the greater economy . Nana Addo was retired and he went to Kyebi to eat plantain and Abom. Fast forward to 2025 , Galamsey gold aka "artisanal gold" brings in significant dollars and the Ghana Cedi becomes relatively stable and Ghanaians begin to enjoy some reprieve in the pricing of petroleum . Deregulation is working fine fine .This arrangement became so good that even after adding GHS 1 per litre levy to the price build up ,the prices of petroleum became cheaper in 2025 than they were in q4 of 2024. As Fofie did not come to meet Atta, the prices of crude began to rise because the Hormuz straight had become crooked due to the twe ma me ntwe ( pull and let me pull) between BB and Iran . And then there came a little slump in gold sales reducing dollar inflows. Cedi began shaking small like Malalaria fever level ( not the kpokpogligli type oo). All too soon the prices of fuel are beginning to see steady rise ( eventhough it has not reached 2024 levels) .All this is normal . What is not normal is that those who calimed the Russia and Ukranian bombs were too far to affect the price of petrol in Ghana are now suggesting that the upward adjustment in prices are due to the Iran /Israel/US conflict . ARE YOU NORMAL ? I wish that those who read this post who misinformed people just to make Nana Addo's government unpopulat will bow their heads in shame . Speak the truth and be free and stop cheapening political engagements . Petroelum pricing has been deregulated and we msut not make it a political chaskele between parties otherwise we will always find ourselves in this "animguase". On that note let me say presticaemo that lunch for today is Gob3 at Lagos Avenue. That ye may be filled with the beans that started the war in Ukraine. Agya Yaw Brefo