Ghana’s Fuel Prices Shift, Cocoa Sector Risks Rise, and Tax Measures Could Boost GDP

Ghana’s economy is facing a mixed bag of developments this August, from fuel price adjustments to pressing warnings over the cocoa sector’s finances and potential fiscal gains from tax reforms.

Fuel Prices to See Mixed Movements from August 16

The Chamber of Oil Marketing Companies (COMAC) projects a slight rise in petrol and LPG prices, while diesel will see a marginal drop in the second pricing window of August.

• Petrol: +0.39% to +2.71%

• LPG: +0.15% to +2.34%

• Diesel: −0.21% to −0.72%

  
  

The changes stem from fluctuating global petroleum prices, a 0.87% depreciation of the cedi against the dollar (GHS 10.68 → GHS 10.77), and product-specific supply and demand trends. Globally, Brent crude dipped 0.23% to $70.26 per barrel, with diesel prices falling sharply by 5.22% and petrol and LPG rising marginally.

World Bank Warns of COCOBOD Debt Pressures

Despite cocoa prices hitting multi-decade highs, Ghana’s cocoa production remains weak, according to the World Bank’s latest Ghana Economic Update. Mounting debts at the Ghana Cocoa Board (COCOBOD), combined with costly quasi-fiscal operations, are threatening the industry’s stability.

The Bank warns that if these fiscal and operational challenges go unresolved, they could have broader economic implications, as cocoa is Ghana’s second-largest export earner after gold. It urged COCOBOD to focus on its core mandate of sustaining cocoa production while improving financial discipline and efficiency.

Tax Reforms Could Boost 2025 GDP by 0.6%

The World Bank projects Ghana could gain at least 0.6% of GDP in additional revenue next year if the 2025 budget’s tax measures are fully implemented.

Key recommendations include:

• Enforcing the tax exemption law.

• Creating a tax expenditure register for transparency.

• Strengthening the Ghana Revenue Authority’s Integrated Tax Administration System.

• Rolling out full adoption of Public Financial Management systems like GIFMIS and GHANEPS.

• Consolidating all spending accounts into the Treasury Single Account.

  
  

The Bank stressed that broadening the tax base and strengthening revenue mobilisation will be essential for sustainable fiscal consolidation under the IMF programme.

Investor’s Insight: Ghana’s construction sector is set for 5.4% annual growth (2025–2028), backed by industrial expansion and a US$5.6 billion renewable energy plan, opening significant opportunities for early investors in infrastructure and clean energy.

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