The Member of Parliament for Collins Adomako-Mensah says Ghanaians should be prepared for possible increases in fuel prices if the conflict in the Middle East continues to push up global oil prices, although the country currently has enough stock to avoid supply shortages.
The Afigya Kwabre North legislator explained that recent fluctuations in the global oil market show how quickly prices can change in response to geopolitical developments.
Speaking to Moro Awudu on the Good Morning Ghana programme on Metro TV Ghana, Mr Adomako Mensah said crude oil prices recently surged to between 110 and 120 dollars per barrel before falling to around 90 dollars after remarks by Donald Trump suggesting that the war could soon end.
He said the volatility means Ghanaians should not be surprised if fuel prices increase at the next pricing window.
According to him, industry players have made it clear that price adjustments are unavoidable when global costs rise.
“I have listened to the Chamber of Oil Marketing Companies and other players in the petroleum industry and they have made it clear that they are business operators. They cannot buy fuel at a higher price and sell it at a lower one. If they purchase at a certain price, they must sell it at a slightly higher price to make a profit,” he said.
Mr Adomako Mensah noted that the government has limited control over international oil prices, but assured that the country currently has sufficient fuel supply.
He cited information from the National Petroleum Authority indicating that Ghana has about seven weeks of fuel stock, with additional cargo shipments already on the way to the country.
“In terms of supply, I am fairly confident that over the next few weeks or even the next couple of months we should not face any serious issues with availability. The real concern is pricing,” he added.
The MP said the situation emphasizes the need for Ghana to strengthen its strategic fuel reserves to cushion the country during global shocks.
He pointed out that major economies in the G-7 are already discussing the possibility of releasing part of their strategic reserves to ease pressure on global prices.
Mr Adomako Mensah also noted that local refining capacity remains limited. According to him, the Tema Oil Refinery is reportedly producing about 10,000 metric tons, while the Sentuo Oil Refinery produces between 30,000 and 40,000 metric tons.
He said this represents roughly half of the country’s fuel requirements, meaning Ghana still depends heavily on imports.
Despite the potential price pressures, the MP maintained that the country’s fuel market remains stable for now, with adequate stocks available to meet demand.
Source: adomonline.com
