Soaring cooking oil prices are hitting Ghanian consumers and retailers

A report by Ghanian news website, MyJoyOnline, says cooking oil wholesalers and retailers in the region are frustrated over the sudden increase in prices of the commodity, lamenting its impacts on sales. 

“Prices of cooking oil have seen significant and unexpected surges with a record minimum 12% increase every three days,” MyJoyOnline states. 

“The irregular and continuous surge is prompting concerns from both buyers and vendors at various market centres in the region.” 

The article carries interviews with a cooking oil wholesaler and two food vendors, who say consumer demand has dropped off markedly due to the high price and frequent increases. They are now struggling to make a living and cannot sell at viable prices. 

According to Maverick Research, a market research agency based in Accra, the continuous surge in cooking oil prices is significantly impacting the disposable income of Ghanaians. 

“As essential goods like cooking oil become more expensive and scarce, households are forced to allocate a larger portion of their income to basic necessities,” Maverick comments. 

 
 
“This leaves less disposable income for other expenses, reducing purchasing power and overall quality of life. In turn, the increased cost burden on families is likely to affect spending on non-essential goods, further straining local economies.” 

Knock-on effects from Russia-Ukraine conflict 

As far back as April 2022, news agency Reuters reported that the conflict between Russia and Ukraine was hitting cooking oil prices particularly hard and fuelling food inflation. 

“Neither Russia nor Ukraine produces palm oil, a tropical commodity, but Moscow’s invasion has triggered knock-on effects across today’s intricately interconnected global economy,” Reuters said. 

“The conflict has helped propel prices for palm oil – ubiquitous in African dishes from Nigerian jollof rice to Ivorian sticky alloco plantains – to record highs that experts say will deepen a food-cost crisis and punish the poorest. 

“Culinary tradition aside, the choice of palm oil has also been an economic one for many poor countries, given it has historically been the cheapest of the major vegetable oils. Lately, however, World Bank data show it’s been catching up to rivals, particularly soy and sunflower oil.”