Ghana’s utility sector is presenting a sharply divided cost picture, with gas production costs falling steeply while electricity and water supply prices continue to climb, according to the March 2026 Producer Price Index (PPI) data released by the Ghana Statistical Service (GSS).
Electricity and gas inflation held the highest rate across all sectors at 13.6% year-on-year, declining only modestly from February levels, continuing to act as a structural burden on production activities. On a month-on-month basis, prices in the combined sub-sector eased by 0.6%, suggesting limited short-term relief.
The headline sub-sector figure, however, obscures a striking divergence within it. Electricity-related activities, encompassing power generation, transmission, and distribution, posted a 15.3% year-on-year increase in producer prices, reflecting persistently elevated costs across the power supply chain. For businesses that rely heavily on electricity as a production input, the sustained increase translates directly into higher operating expenses, which producers may pass on through the prices of goods and services.
Gas production and distribution moved in the opposite direction, recording a steep year-on-year deflation of 29.1%. The sharp decline points to a significant reduction in input costs along the gas supply chain, offering meaningful relief to industrial users and electricity generators that depend on gas as a primary fuel source. Cheaper gas carries the potential to partially offset the upward pressure from electricity tariffs, reducing the net energy cost burden on manufacturers.
The water supply, sewerage and waste management sector held steady at 9.9% year-on-year in February and maintained that rate in March, indicating persistent inflationary pressure with no sign of easing. At a more granular level, water collection, treatment, and supply recorded an inflation rate of 17.2%, underscoring structurally high costs in water provision that businesses have little ability to cushion through alternative sourcing.
The combined picture presents an uneven cost environment for producers. While the dramatic fall in gas prices opens a genuine avenue for cost relief in energy-intensive sectors, sustained increases in electricity and water costs continue to weigh on the overall cost base, limiting the extent to which businesses can benefit from the easing in one part of the utility market.
Headline producer price inflation rose marginally to 1.5% year-on-year in March from 1.4% in February, compared with 24.4% in March 2025, reflecting the dramatic disinflation over the past twelve months. The utility sector divergence, however, suggests that cost pressures have not eased uniformly, and businesses in power-dependent industries remain exposed to above-average input price growth.
