Former Finance Minister and Ranking Member on Parliament’s Finance Committee, Dr Mohammed Amin Adam, has challenged the governing National Democratic Congress (NDC) to accept the same description it used against the former New Patriotic Party (NPP) government over rising fuel prices. In a Facebook post on Sunday, September 27, Dr Amin Adam argued that the economic circumstances being cited to explain current increases also existed under the previous administration.
Dr Amin Adam noted that the NDC, while in opposition, repeatedly described rising fuel prices under the then Akufo-Addo/Bawumia administration as evidence of “insensitive and bad leadership”. The party blamed taxes, cedi depreciation, and economic management for the increases and demanded that the government stabilise the currency to bring down fuel prices. He stated that the fuel pump has a long memory and the economic principles governing fuel prices have not changed simply because there has been a change in government.
According to Dr Amin Adam, the 2021 increases occurred amid a major global energy shock, with Brent crude rising from about US$50 per barrel at the beginning of the year to approximately US$86 by late October. He also cited US Energy Information Administration data showing that global petroleum inventories fell by 469 million barrels in 2021, while the IMF reported that Brent had risen above US$85 amid tight energy supplies and a global surge in energy prices.
Dr Amin Adam stressed that Ghana remains largely a price-taker in the international petroleum market and that movements in global prices and the exchange rate affect domestic pump prices. He therefore argued that the standard applied by the NDC to the former NPP government over rising fuel prices should also be applied to the NDC government now in office. “If the NPP was insensitive and provided bad leadership because fuel prices were rising, then the NDC should accept the same description now,” he said.
The international petroleum prices, geopolitical pressures, and exchange-rate dynamics being cited by the NDC today were also factors in 2021, according to Dr Amin Adam. “The fuel pump has not changed the economics. It has simply changed who has to explain it,” he added. Dr Amin Adam’s comments come as fuel prices continue to rise in Ghana, with diesel prices remaining above GH¢18.
Dr Amin Adam has also called for a review of fuel taxes, citing the impact on consumers. The NDC government has been criticised for its handling of the economy, with some Ghanaians expressing frustration over the rising cost of living. The government has attributed the increases to global factors, including the rise in international petroleum prices and the depreciation of the cedi.
The debate over fuel prices is likely to continue, with Dr Amin Adam’s comments adding to the discussion. Key points include the need for the government to stabilise the currency to bring down fuel prices and the impact of global factors on domestic pump prices. The NDC government will have to navigate these challenges as it seeks to address the concerns of Ghanaians over the rising cost of living.
Key points
- Dr Mohammed Amin Adam challenges NDC to accept same criticism over fuel prices as they did to NPP government
- Economic circumstances cited to explain current fuel price increases also existed under previous NPP administration
- Ghana remains largely a price-taker in the international petroleum market, with movements in global prices and exchange rate affecting domestic pump prices
