The Governor of the Bank of Ghana, Dr. Johnson Asiama, has assured Ghanaians that the country’s economy is well-positioned to withstand potential external shocks stemming from the ongoing conflict between Iran and Israel in the Middle East.

Speaking at the Ghana Association of Banks Industry Thought Leadership Programme, themed “Banking the Last Mile: An Industry-Led Strategy for Accelerating Digital Finance”, Dr. Asiama highlighted that Ghana’s strengthened foreign reserves, improving inflation trends, and sustained fiscal adjustments serve as robust buffers during uncertain global times.

He emphasized that the Bank of Ghana is actively monitoring global developments and their possible effects on the domestic economy.

“I wish to assure the public that Ghana’s macroeconomic buffers are stronger today than they have been in recent years,” Dr. Asiama stated.

He added that the Bank is also engaging international partners to ensure a proactive response to any arising threats. “The Bank stands ready to take prudent and pre-emptive measures to preserve Ghana’s economic stability and protect the gains we’ve made,” he said.

Impact of Middle East Tensions on Oil Prices

Meanwhile, concerns are mounting over the possible rise in fuel prices. Dr. Riverson Oppong, CEO of the Ghana Chamber of Oil Marketing Companies, recently told JOYBUSINESS that crude oil prices on the international market could surge from July 1, 2025, due to the escalating conflict in the Middle East.

If this trend continues, it could reverse the steady drop in fuel prices experienced since February 2025. Oil prices have already declined from $78 to about $74 per barrel since June 16.

In response to the growing uncertainty, President John Mahama has instructed the Finance and Energy Ministries to implement strategic measures to cushion the economy against possible shocks.

“Despite the work we have done in stabilizing the economy, Ghana is not immune from the shocks of global events,” the President noted.

Sources indicate that the government may announce specific interventions ahead of the upcoming Mid-Year Budget Review, with multiple options currently being considered.

Ghanaians can expect a drop in fuel prices starting Monday, June 16, 2025, following the government’s decision to suspend the proposed GH¢1.0 Energy Sector Levy. This comes as a relief to consumers and marks the seventh consecutive price reduction since mid-February.

The latest Pricing Outlook Report from the Chamber of Oil Marketing Companies (COMAC) indicates that the postponement of the levy is a key factor driving the anticipated price cuts.

Projected Prices at the Pump

According to data sourced from oil marketing firms and obtained by Joy Business, the new price of petrol is expected to be around GH¢11.77 per litre — representing a drop between 1.1% and 2.25% from prices recorded on June 1.

Diesel prices are set for a more significant decrease, falling by as much as 4.3% to about GH¢12.13 per litre. Likewise, Liquefied Petroleum Gas (LPG) will see a 3.2% dip, bringing the price per kilogram to GH¢13.30.

Why Are Prices Falling?

The Chamber attributes the downward trend primarily to the Ghana cedi’s continued appreciation against the US dollar. This currency strength has offset the impact of rising global oil prices, which surged amid renewed conflict in the Middle East.

Despite crude oil prices climbing to around $75 per barrel due to Israel’s military strikes on Iranian nuclear sites, Ghanaian fuel prices remain stable — for now. The situation, however, remains volatile.

Warning Signs for July

Officials at COMAC caution that if global oil prices continue to climb, fuel prices in Ghana could begin to rise again starting July 1, 2025.

Recent escalations in the Middle East have already caused oil prices to rise sharply, with Brent crude jumping 4.41% from $65.35 to $68.23 per barrel. These tensions have also prompted the United States to partially evacuate its embassy in Iraq, adding to global uncertainty.

As a result, international benchmark prices for petrol and diesel have risen by 1.03% and 3.94% respectively. In contrast, LPG prices dropped by 1.79%.

Impact of the Suspended Levy

COMAC’s projections suggest that had the government gone ahead with the additional GH¢1.0 Energy Sector Levy, consumers would have faced significant price hikes. Petrol would have surged by 9.1% per litre and diesel by 8.25%. LPG would have still seen a modest 2.29% decline, as it was not included in the levy’s scope.

The current suspension offers temporary relief, but stakeholders warn that sustained global instability may force a reversal of the current trend in the coming weeks.

The Asantehene, Otumfuo Osei Tutu II, has expressed deep concern over Ghana’s continued dependence on imported food items that can be cultivated locally.

He urged the Minister for Food and Agriculture, Eric Opoku, to take bold steps to significantly reduce food imports and prioritize the development of local agriculture.

Speaking during a courtesy call by the Minister and his delegation at the Manhyia Palace on Friday, June 13, Otumfuo Osei Tutu II emphasized the need for urgent interventions to rekindle interest in farming, particularly among the youth.

The Asantehene recommended a possible revival of the historic “Operation Feed Yourself” initiative from the Acheampong era, should the government deem it necessary to revitalize the agricultural sector.

“It’s disheartening that we are still importing basic produce like tomatoes and onions. Work hard to halt or at least minimize food imports so we can produce more locally. I’ll be monitoring closely—make sure farmers get irrigation support,” he stressed.

Otumfuo also called on chiefs and traditional leaders across the country to contribute to national development by making land available for agricultural use, suggesting such lands could be offered as equity in farming ventures to encourage investment and productivity.