Audio By Carbonatix
Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.
The monthly fuel import bill for the West African nation jumped to $450 million in May, from $250 million in January, according to two people with knowledge of the matter.
The central bank is only offering about $100 million a month at its foreign exchange auctions, and licensed bulk distributors can no longer plug the shortfall in the black market, the people said, asking not to be identified as the matter isn’t public.
African governments face stark choices as Western sanctions on Russia disrupt global energy markets and prices soar. Though Africa is home to several major producers of crude oil, the continent has limited capacity to turn that into fuel for cars, trucks and planes.
Ghana’s central bank is reluctant to spend its limited dollars on importing fuel, though it’s also looking at ways to boost its foreign exchange holdings, the people familiar said.
Those reserves stood at $8.34 billion at the end of April 2022, down from $9.7 billion at the end of last year, according to the central bank.
The nation’s challenge has been increased as the cedi weakened 22% against the dollar this year, the worst performance among African currencies tracked by Bloomberg.
The country’s inflation rate jumped to 27.6% in May, the highest level in more than 18 years, as food and transport costs surged.
A spokesman at the Bank of Ghana could not immediately comment when reached by phone. A spokesman for the Ghana Chamber of Bulk Oil Distributors also declined to comment.
Latest Stories
-
Anthony Joshua discharged from hospital after fatal road crash
2 hours -
Trump media firm to issue new cryptocurrency to shareholders
2 hours -
Ebo Noah arrested over failed Christmas apocalypse and public panic
4 hours -
‘Ghana’s democracy must never be sacrificed for short-term politics’ – Bawumia
4 hours -
Bawumia congratulates Mahama but warns he “cannot afford to fail Ghanaians”
4 hours -
CICM backs BoG’s microfinance sector reform programme; New Year Debt Recovery School comes off January-February 2026
4 hours -
GIPC Boss urges diaspora to invest remittances into productive ventures
4 hours -
Cedi ends 2025 as 4th best performing currency in Africa
4 hours -
Fifi Kwetey brands calls for Mahama third term as ‘sycophancy’
4 hours -
Bawumia calls for NPP unity ahead of 2028 elections
4 hours -
Police restore calm after swoop that resulted in one death at Aboso
5 hours -
Obaapa Fatimah Amoadu Foundation launches in Mankessim as 55 artisans graduate
5 hours -
Behold Thy Mother Foundation celebrates Christmas with aged mothers in Assin Manso
5 hours -
GHIMA reaffirms commitment to secured healthcare data
5 hours -
John Boadu pays courtesy call on former President Kufuor, seeks guidance on NPP revival
5 hours
