A Technical Advisor at the Ministry of Finance, Theo Acheampong, has argued that Ghana’s recent macroeconomic stabilisation efforts played a critical role in preventing a sharp surge in Ghana fuel prices, warning that petrol could have exceeded GH¢20 per litre under adverse global conditions.
Speaking during an X Space discussion on the theme “The Price of Stability,” he linked the country’s improved inflation control and exchange rate stability to decisive interventions by the Bank of Ghana.
Dr Acheampong pointed to geopolitical tensions, particularly involving Iran, Israel, and the United States, as major external risks that could have worsened domestic price pressures.
“If we hadn’t done the pace of the adjustment… I can tell you that we would have been paying well over GH¢20 a litre for petrol,” he said, warning that such a scenario would have triggered a severe inflationary spiral.
He added that higher fuel costs would have had “a disastrous cascading impact on inflation and our overall economic well-being.”
Costly but Necessary Interventions
The stabilisation effort has come at a significant cost. The Bank of Ghana recorded an operating loss of GH¢15.6 billion in 2025, driven largely by aggressive monetary tightening measures.
According to its annual report, the central bank spent heavily on liquidity management tools such as Open Market Operations, alongside incurring losses linked to gold reserves and foreign exchange revaluation.
Despite this, Dr Acheampong maintained that the central bank remains “policy solvent,” noting that its ability to implement monetary policy has not been compromised.
He emphasised that recent global shocks, including the COVID-19 and the Russia–Ukraine War, highlight the need for stronger economic buffers.
“The lesson… has been that you need to build buffers. We’ve done that now,” he said, stressing the importance of sustaining reforms to drive long-term structural transformation.
Signs of Stability Emerging
Recent data from the May 2026 pricing window shows petrol selling at GH¢13.25 per litre, reflecting relative stability in Ghana fuel prices despite global uncertainties.
While challenges remain, analysts say the country’s stabilisation efforts have helped cushion consumers and position the economy on a more resilient footing, even as reforms continue under Ghana’s IMF-supported programme.
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