The Africa Sustainable Energy Centre (ASEC) is urging the Ghanaian government to take swift, proactive measures to prevent global oil market volatility, triggered by the ongoing Israel‑Iran conflict, from inflating local fuel prices.
The body called for the swift revival of the Tema Oil Refinery (TOR) to help mitigate any effects of the conflict.
The energy think‑tank, in a statement, emphasised that any surge in global petroleum prices could heavily strain both households and businesses in Ghana.
It argued that bringing TOR back online with sufficient capacity would significantly reduce Ghana’s vulnerability to external oil‑price shocks adding that TOR should be positioned as the primary buyer of domestic crude before export.
“It would be ideal for the government to revive TOR, provide strong financial guarantees, and renegotiate terms for TOR to be the first buyers of crude production before export. This would, in fact, be the best-case scenario for Ghana,” it stated.
ASEC also believes the now-cancelled Gold‑for‑Oil policy is a crucial tool during this period of uncertainty.
“One critical measure is the effective implementation of the Gold for Oil policy, a strategy designed to secure stable petroleum supplies while minimising the adverse effects of cedi depreciation on fuel prices.
“By reducing pressure on foreign exchange reserves, this policy can help cushion pump prices during this period of global uncertainty and keep them within a manageable range for consumers. To fully realise its benefits, the Gold for Oil programme must be executed with enhanced transparency and accountability, ensuring that its price-stabilising potential is maximised,” ASEC explained.
Rejecting claims that current fuel prices are already high enough to absorb further hikes, ASEC warned that even small increases will exacerbate the economic distress faced by many Ghanaians saying, “Every effort must be made to avoid further burden on Ghanaians.”
ID/MA
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