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
-
Assembly member shot as armed robbery wave grips Agona East District
7 minutes -
UNIFIL condemns air strikes that injured Ghanaian peacekeepers in Lebanon
21 minutes -
Armed robots take to the battlefield in Ukraine war
46 minutes -
AI-generated Iran war videos surge as creators use new tech to cash in
1 hour -
Kufuor calls for intellectual revolution to fix Ghana’s structural cracks
3 hours -
This Saturday on Prime Insight: Experts to tackle Mahama’s land transit ban on rice and ORAL progress
3 hours -
‘Tragic event’: Israeli Ambassador reacts to missile attack on Ghanaian soldiers in Lebanon
4 hours -
Huge US bomber lands at UK air base
4 hours -
Introducing Regalia Residence: Accra’s new luxury standard
4 hours -
Emirates restores flights as airspace reopens, moves toward full global operations
5 hours -
Widows’ bodies in exchange for land: A call to the state and traditional authorities
5 hours -
Ghanaian faces 20 years in US prison after $100m global romance scam bust
5 hours -
Foreign Affairs Minister engages US, Israel and Iran on protection of Ghanaians
7 hours -
The Republic at 69: A Birthday Party with Too Many Speeches and Too Few Solutions
8 hours -
Ghana’s Economic Turnaround: From Junk Status to Renewed Growth
8 hours
