Rising Fuel Prices Could Push Up Food Production Costs – Industry Leaders Warn
The Chairman of the Food and Beverages Association of Ghana, John Awuni, has cautioned that rising global fuel prices could soon increase the cost of food production in Ghana.
Speaking on the PM Express Business Edition on Joy News, he explained that higher petroleum prices are already affecting key inputs such as fertilizer, packaging materials, and transportation factors that could ultimately drive up food prices in the coming farming season.
“If fuel prices go up, it has an effect because the cost of production is going to increase,” Mr. Awuni said.
He explained that diesel powers many industrial machines while vehicles used in logistics also rely heavily on fuel.
He further noted that fuel prices are a major component in determining energy tariffs, together with exchange rates. According to him, any increase in fuel prices is likely to raise energy costs for businesses.
“Energy costs add to your cost of production. Therefore, the total cost of production will go up and prices will also have to increase for businesses to remain operational,” he stated.
Mr. Awuni added that transportation costs would also rise, affecting the movement of goods across the supply chain and pushing inflation higher.
Meanwhile, Chief Executive Officer of the Association of Ghana Industries, Seth Twum-Akwaboah, also warned that rising fuel prices will increase both energy and transport costs for manufacturers.

According to him, several goods will become more expensive because many production inputs depend on petroleum-based materials.
“Packaging materials that rely on petroleum products will go up internationally as fuel prices rise,” he explained.
Mr. Twum-Akwaboah also indicated that fertilizer prices are likely to increase, particularly because many fertilizers are imported from the Middle East. This, he said, could significantly raise production costs for farmers during the next cropping season.
“So the next cropping season, farmers are likely to incur higher costs producing maize, soya beans and other crops locally, and that will push prices up,” he said.
He added that transportation and logistics costs will also increase as global oil prices approach $100 per barrel.
According to Mr. Twum-Akwaboah, Ghana already faces high production costs, and further increases in fuel prices could worsen the situation for businesses and farmers alike.
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