The World Bank’s latest Africa Economic Update confirms that African economies, including Ghana, are most exposed to escalating conflict in the Middle East since they possess limited fiscal space to respond to rising prices.
The report observed that while some countries have sought to shield consumers through tax cuts, stabilisation mechanisms or temporary subsidies, others with tighter fiscal constraints have had little choice but to pass through higher costs.
Some countries have cushioned consumers by reducing or repurposing fuel levies and stabilisation funds (Kenya and Namibia) or introducing emergency fuel subsidies (Ethiopia), while others with limited fiscal room have raised regulated fuel prices or caps (Ghana, Malawi, Mali and Tanzania).
“In countries with little capacity to intervene, fuel prices have surged sharply (Somalia and Zimbabwe).”
President John Dramani Mahama chaired an emergency meeting on Thursday, April 9 this year (2026), where it was resolved that the finance and energy ministers should secure a reduction in pump prices at the next pricing window by suspending selected fuel taxes and margins for four weeks, subject to review.
Ministers and senior officials were further ordered to comply with an earlier directive cancelling fuel allocations and allowances. Also, the transport minister has been tasked with accelerating a rollout of 100 Metro Mass Transit buses on high-traffic routes, with fares set below those charged by private operators.
These interventions follow a steep increase in fuel prices effective April 1, with petrol rising by about 15 percent to roughly GH¢13.30 per litre and diesel by nearly 19 percent to GH¢17.10 per litre for the April 1–15 pricing window, according to the National Petroleum Authority.
These increases resulted from a surge in global oil prices after the escalation of tensions involving Iran, which pushed Brent crude from the low US$70 a barrel in late February to above US$110 by end-March.
Beyond energy, the World Bank highlights growing risks to food supply. The report warns that recent disinflation across countries including Ghana could prove fragile.
Meanwhile, oil prices surged by more than 7% – back above US$100 a barrel – on Monday after US President Donald Trump ordered the blockading of Iranian ports following a failure of peace talks between Washington and Tehran.
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