The Chamber of Petroleum Consumers (COPEC) has warned that fuel prices could rise to between GH¢17 and GH¢18 per litre in the first pricing window of April.
The projected increase is attributed to escalating geopolitical tensions in the Middle East, which are threatening supply chains and driving volatility in global crude oil prices.
Executive Secretary of COPEC, Duncan Amoah, in an interview with Citi Business News, said that the impact of potential supply disruptions could be more pronounced for Ghana by May.Daily news digest
He is therefore urging the adoption of mitigating measures, including building strategic fuel stocks, to cushion the anticipated shocks.
“April will be very okay, because there is enough in-country. Prices may differ, but you may not be so lucky a month after, because clearly, the global supply situation is grinding slowly. What you have now that has even sustained us is because the G7 and America itself have decided to put out reserve stock.
“They will not have that stock forever. They will not be able to put out that stock, I mean, in perpetuity. So it calls for us as a country to start looking for strategic stock immediately.Ghana tourism packages
“I have said, and I would repeat, it will be better to sustain the Ghanaian petroleum prices at the GHȼ15, GHȼ14, GHȼ13 region than to wait for it to get to GHȼ17, GHȼ18, which is probably what you are going to see in the next window, or wait for it to get even worse before you plan.
So whatever can be done, if the finance minister can find some contingency funds and help BOST to get some product to store, it is high time we do so now,” Duncan Amoah said
He added, “We are around GHȼ15, GHȼ16 almost. It is potentially likely you could be doing about GHȼ17, GHȼ18 by the first window in April. That should not be the only worry. The supply disruptions that is happening within the Gulf could also bite so badly if it persists to such a time that cargoes are no longer coming in as planned,” he added.
Disruptions to shipping activity through the Strait of Hormuz have tightened supply and heightened volatility in crude oil prices, with Brent crude at some point surpassing $100 per barrel.
The development could have pass through effects for Ghana in terms of hikes in fuel prices.
Source: energycrossroad.com
