The Chamber of Petroleum Consumers (COPEC) has urged government to prioritise the establishment of a strategic fuel reserve system rather than relying on periodic interventions to cushion consumers against rising petroleum prices.
His comments follow President John Dramani Mahama directing the National Petroleum Authority (NPA) to take steps to absorb GH¢2 on every litre of diesel as part of measures to cushion consumers against recent fuel price increases.
Speaking in an interview on JoyNews’ The Pulse, the COPEC Executive Director, Duncan Amoah, said while government’s decision to reduce diesel prices by GH¢2 per litre is a welcome relief for consumers, such measures are not a sustainable solution to fuel price volatility.
According to him, Ghana needs a structured mechanism that allows the state to purchase and store petroleum products when prices on the international market are favourable and deploy them during periods of price hikes.
He explained that a strategic reserve programme would provide the government with a more reliable tool to manage global market shocks without having to sacrifice significant tax revenue through emergency pump price interventions.
“Government must find a way towards the strategic reserve programme model, which allows government to keep something within the taxes throughout the year, save something, and store fuel when prices are favourable,” Mr Amoah said on Monday, August 3.
He noted that the current diesel price reduction, though positive, could be short-lived because it depends on government’s ability to continue absorbing the cost amid competing demands on public finances.
The COPEC Executive Director estimated that the intervention would come at a significant cost to the state, particularly at a time when government is operating under tight fiscal conditions.
Mr Amoah said “Ghana’s petroleum market remains vulnerable to international price movements, making long-term planning critical.”
He argued that building fuel reserves would allow the country to reduce the impact of sudden increases in global crude oil prices and protect consumers from sharp adjustments at the pumps.
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