Big Drops in Airfares, Fuel Prices & Loans Shake Up Ghana’s Economy

asanteyawobed
Jun 17
3 min read

Ghana’s economic pulse is shifting, fueled by a stronger cedi, easing inflation, and private-sector innovation. This week’s market highlights demonstrate the significant impact of the local currency's appreciation on pricing, policy, and participation across key sectors.

Passion Air Slashes Domestic Airfares by 10%

Domestic travellers now have more reason to fly.

Passion Air has announced a 10% reduction in airfares across all local routes, effective today, June 17, 2025. This move comes in direct response to the Ghanaian cedi’s continued appreciation, which has helped ease operational costs for airlines.

The fare cut is also seen as a direct response to calls from Transport Minister Joseph Bukari Nikpe, who last week encouraged domestic carriers to reflect currency gains in their pricing strategies.

“This fare adjustment comes in response to the recent strengthening of the cedi… We remain focused on making domestic travel more accessible and affordable,” Passion Air shared in a public statement.

This is the first major fare cut in Ghana’s aviation space since 2020, signalling what could be a broader pricing shift in the coming months.

Petrol Prices Drop at the Pumps: Cedi Power at Play

Fuel consumers are also getting a breather. A number of Oil Marketing Companies (OMCs) have begun reducing petrol and diesel prices, with some stations quoting petrol at just GH¢10.99 per litre, down significantly from GH¢11.57 and GH¢12.98 quoted earlier in June.

📉 Petrol Prices at a Glance (as of June 16, 2025):

Star Oil: GH¢11.57 (Petrol)
Shell: GH¢11.98 (down from GH¢12.98)
Allied Oil: GH¢10.97 (down from GH¢11.45)
Diesel prices also dipped slightly, now averaging GH¢12.45–GH¢12.85

Why the Drop?

Stronger Cedi: The appreciation from late May to mid-June helped offset rising crude costs.
Levy Suspension: The Government's decision to suspend the GH¢1 fuel tax levy prevented a potential hike.
Global Market Pressures: OMCs warn, however, that tensions in the Middle East, particularly the Iran-Israel conflict, may cause a rebound in prices as early as July 1, 2025.

The government is expected to announce further mitigation measures before the Mid-Year Budget Review, following a directive from President John Mahama.

Bolt & Fido Credit Offer Instant Loans to 2,400+ Drivers

In a major step toward financial inclusion, ride-hailing giant Bolt has partnered with fintech firm Fido Credit to offer flexible credit to its drivers.

More than 2,400 Bolt drivers have already accessed the short-term digital loans, which are:

Instant (within 5 minutes)
No collateral or paperwork
Rewarded: GH¢35 cashback on repayment, GH¢30 referral bonus after two loans

This fintech initiative lowers the barrier to business capital for informal sector workers, many of whom lack documentation or access to traditional credit.

“We are committed to removing financial barriers for our drivers,” said Bolt’s Africa Director, Caroline Wanjihia.

With over 400,000 customers in Ghana, Fido is positioning itself as a digital finance leader, helping expand access to credit using mobile data and AI.

Market Snapshot – June 17, 2025

Indicator	Latest Value	Change
USD/GHS	GH¢10.31	↓ BoG Selling Rate
Gold Coin (1 oz)	GH¢36,788.53	↓ from GH¢44,403.68 (Nov 2024)
VitaMilk (300ml)	GH¢16.00	↑ 45.45% from GH¢11 (July 2024)

Investor’s Insight: Why Agriculture Still Holds Promise

Despite volatility in commodities and fuel, agriculture remains Ghana’s economic backbone, contributing about 20% to GDP. From agribusiness processing to value chain logistics, the sector offers sustainable investment potential.