The Chief Executive Officer of the National Petroleum Authority (NPA), Edudzi Tameklo, has explained that fuel prices in Ghana increased even though global crude oil prices fell because the prices of refined petroleum products rose sharply during the recent conflict involving the United States, Israel and Iran.
According to him on Joy fm on August 3, 2026, Mr. Tameklo said public discussions on fuel pricing often focus only on crude oil prices and ignore other important factors that determine the pump price of petroleum products.
He explained that before the conflict, a metric tonne of diesel sold for about 794 US dollars, but after the hostilities intensified, the price rose to about 1,340 dollars per metric tonne.
“That same quantity of diesel is now selling for about 1,340 dollars per metric tonne. That is where the bigger challenge is,” he stated.
According to him, crude oil is traded in barrels, while refined products such as diesel are traded in metric tonnes, and the two prices do not always move in the same direction.
Mr. Tameklo said fuel pricing in Ghana is determined mainly by three factors: the international price of refined products, the exchange rate, and taxes and margins.
He noted that taxes and margins have largely remained unchanged, while the exchange rate has been relatively stable in recent months, leaving the international price of refined products as the main source of the recent increase.
The NPA CEO said that when a ceasefire was announced in June, refined product prices fell from nearly 1,200 dollars to about 890 dollars per metric tonne, and pump prices in Ghana dropped to levels seen before the conflict.
However, he said renewed military action caused prices to rise again.
“It is unfortunate that the bombing resumed, and that immediately pushed prices back up,” he said.
Mr. Tameklo acknowledged that crude oil prices did not rise by the same magnitude.
He noted that crude oil briefly rose to around 110 dollars per barrel during the height of the conflict and later declined to about 87 dollars per barrel after signs of easing tensions emerged.
He explained that Ghana does not use the daily crude price when setting fuel prices.
Instead, authorities calculate the average international prices over the previous 14 days before announcing a new pricing window.
“If you quote today’s crude price, it will not reflect the decision that was taken based on the previous 14 days,” he explained.
Mr. Tameklo said the conflict increased the cost of moving petroleum products across international shipping routes.
According to him, insurance premiums for cargoes have risen significantly because of heightened risks in the region, particularly around the Strait of Hormuz.
He added that recent diplomatic efforts involving Oman, Iran and other Gulf states had helped calm the market and contributed to the latest decline in crude oil prices.
The NPA CEO said understanding fuel prices requires a broader assessment of global refined product markets, shipping costs, insurance charges and exchange rate movements, not crude oil prices alone.
By: Jacob Aggrey
