Vice President Dr. Mahamudu Bawumia has absolved the New Patriotic Party (NPP) government of any blame for the recent oil price increases.
He said the increases were due to the turmoil in the petroleum sector in the international market.
Speaking at the National Energy Transition Dialogue in Accra, Dr. Bawumia said the global movement to reduce fossil fuels to achieve net-zero emissions levels is already taking a toll on the global economy as funds for oil exploration and exploitation shrink.
"We all need to be aware that this transition will take place over the next 30 years, but the cost of this transition is already being felt today. There are fewer and fewer resources available for oil exploration and exploitation, which is reflected in rising oil prices around the world. We in the developing world are facing this very high cost of oil, and that has many economic impacts, such as inflation, as prices of goods rise in response to the rise in oil prices."
He further stated, "Many have said that the increase in petroleum prices will remain at the high level; we will not see a major decrease. As developing countries like Ghana, how can we adjust to this new reality when high oil prices and their impact on macro variables become the new normal in our respective economies?"
Dr. Bawumia used the platform to underscore the need for transition, but also pointed out the high price that developing countries like Ghana will have to pay.
The rise in oil prices has led to the announcement of an increase in fares from February 26.
The increase will affect shared cabs, intra-city transport, popularly known as 'trotro', and intercity transport.
Drivers say the increase has been made necessary by the rise in fuel prices and the country's economic hardship, which affects their work.