Traffic congestion ranks among the top three urban challenges in Ghana. While past governments over the years have made efforts to resolve it, it remains a challenge.

Per reports, when petrol prices rose by approximately 150% and diesel by nearly 200% from 2020 to 2024, moving from below GHS 5/litre to above GHS 13/litre, traffic congestion reduced in some parts of Ghana, as discretionary trips for some households and businesses were reduced.

However, while addressing Ghanaians living in Zambia during an official engagement on Wednesday, February 4, President Mahama mentioned that Ghana is currently experiencing congestion due to reduced fuel prices.

The recent drops in fuel prices have created a new dynamic: more vehicles on the road, leading to heavier traffic volumes.

According to him, the prices of fuel under the erstwhile government had limited people who wanted to travel to places in their own cars; things are different now, stressing that the congestion is a sign of a growing economy.

“We have also seen improved economic activity. Business is booming, and one sign of booming economic activity is traffic congestion. More people are using their cars because, previously, people could not buy fuel and would not drive unnecessarily.

“But now that fuel is more affordable, people are using their cars more and going to places they would not have gone before,” President Mahama said, while warning Chief Executive Officers (CEOs) of State-Owned Enterprises (SOEs) to submit their annual and audit reports by April or face sanctions.

“I said we will take action against any chief executive of a state-owned enterprise who, by the end of April, which is the target date, has not completed their audits and presented their annual reports.

Meanwhile, the recent report from the Ghana Statistical Service (GSS) indicates that petrol prices fell by 20.1% year-on-year, while diesel prices also fell by 18.7% year-on-year, driving down transport costs and contributing to lower inflation.

Consequently, motorists started the New Year on a good note with less pressure on their pockets as several  Oil Marketing Companies (OMCs)  effected a reduction in fuel prices at their respective pumps across the country in the January pricing window.

The price cuts, which took effect in the early hours of the New Year, signified a continued downward trend in petroleum costs, offering much-needed breathing room for both commercial and private transport users.

Among the first OMCs that effected the reduction was market leader Star Oil. It set the pace and a benchmark for other OMCs as it adjusted its digital displays. A marginal dip from previous prices.

Petrol is now selling at GH¢10.86 per litre, diesel is priced at GH¢11.96 per litre, and RON 95 is selling at GH¢13.56 per litre.

According to the Star Oil management, the reduction in oil prices is a result of a "favourable domestic and external cost environment," citing the cedi appreciation and a dip in international refined product prices.

It said the current reductions may only be the tip of the iceberg for January. The Chamber of Oil Marketing Companies (COMAC) projected a robust outlook for the month, suggesting that competitive pressures will force more OMCs to follow suit in the coming days.

In its January pricing outlook, COMAC provided a breakdown of the expected percentage declines. It was projected that petrol would fall by up to 4.80%, and diesel was also estimated to drop by approximately 3.77%. LPG, on the other hand, was expected to see a reduction of roughly 2.19%.

Industry analysts believe that if the cedi maintains its current trajectory and international crude prices remain below $80 per barrel, Ghanaians could see even more substantial relief by the second pricing window in mid-January.

While the prices of fuel are dropping, Ghanaians have had to brace themselves for an increase in utility tariffs, which took effect on January 1, 2026.

Following the announcement of the increase, there was widespread disapproval, particularly from stakeholders and the general public.

On December 2, 2025, the Public Utilities Regulatory Commission (PURC) announced an imminent increase in tariffs, with the new rates set to take effect from January 1, 2026. The Commission said the increases, 9.86% for electricity and 15.92% for water, had become necessary to meet utility investment needs, respond to macroeconomic pressures, and ensure the long-term stability of the sector.

Consequently, the Trades Union Congress (TUC), the labour umbrella body that represents workers’ interests and coordinates labour unions, engaged the Commission on two different occasions, first, about a week after the increase was announced, and later in a subsequent meeting nearing the end of December.

Following these engagements, a joint statement released by the institutions revealed efforts to balance consumer concerns with the financial sustainability of utilities; however, the PURC’s stance remained unchanged.

The Commission contended that any reversal of its 2026–2030 Multi-Year Tariff Order (MYTO) could have serious consequences for the stability of Ghana’s energy and water sectors, as well as the broader economy.

The Multi-Year Tariff Order (MYTO) is a regulatory framework used by the Public Utilities Regulatory Commission (PURC) to set electricity and water tariffs over a fixed period, 2026 to 2030, in this case. It is intended to ensure predictable pricing, financial stability for utilities, and protection for consumers.

The Commission reaffirmed this position during meetings with the Trades Union Congress (TUC) held on December 11 and 30, 2025, during which the new tariff schedule, which took effect on Thursday, January 1, 2026, was discussed.

“…The PURC reaffirmed its position that any reversal of the tariff decision would have significant implications, not only for the Commission's independence but, crucially, for the stability of the energy and water sectors and the broader Ghanaian economy,” parts of the statement said.

According to the joint statement, discussions focused particularly on the implications of the tariff adjustments on the living conditions of workers, as well as on electricity stability and investments in the power and water sectors. The discussions also explored avenues for collaboration between the two institutions.