Fuel imports, rising prices squeeze Ghana’s trade surplus – GSS

The Ghana Statistical Service (GSS) Quarterly Trade Statistics shows diesel, or gas oil, was the country’s largest single import during the period, valued at GH¢12.2 billion, while super petrol imports amounted to another GH¢8 billion.

The development contributed to a sharp increase in Ghana’s import bill, which rose by 47.5% in the second quarter compared with the first quarter.

The GSS says fuel imports remain particularly vulnerable to movements in international prices.

Import prices increased by 22.7% during the quarter, while fuel import prices alone surged by 54.1%.

The higher import costs contributed to a significant narrowing of Ghana’s trade surplus, which fell by 70.1% from GH¢46.1 billion in the first quarter to GH¢13.8 billion in the second quarter.

The GSS is also cautioning that Ghana’s headline trade surplus remains heavily supported by high export prices, particularly gold, rather than broad-based growth in export volumes.

This leaves the country exposed to external price shocks and highlights the vulnerability created by a narrow export base.

The Service is therefore calling for measures to diversify Ghana’s exports, increase local processing and value addition, and expand access to international markets.

It is also recommending stronger implementation of the African Continental Free Trade Area (AfCFTA), improved transport and border infrastructure, and better access to financing for exporters.

According to the GSS, reducing dependence on a narrow range of exports while strengthening domestic production and processing will be critical to building a more resilient trade position and reducing Ghana’s exposure to global price movements.