Ghana on Saturday ended its subsidies on fuel, hiking the prices of petroleum products as the growing west African economy struggles with a skyrocketing deficit.
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"This adjustment completely removes the subsidies on petrol, diesel and liquid propane gas," National Petroleum Authority chief executive Alexander Mould said in a statement.
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The statement said the subsidies cut would cause only a minimal increase in prices. However, the prices of petroleum products will be more susceptible to fluctuations on the international market.
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Petrol and liquefied petroleum gas (LPG) will go up by three percent, while diesel will rise by two percent.
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Ghana had been under pressure from the International Monetary Fund to cut fuel subsides since its budget deficit ballooned to 12.1 percent of GDP last year, which was double its target for the year.