The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has called on the government to establish a strategic fuel reserve to protect Ghana from sharp increases in petroleum prices and potential disruptions in fuel supplies.
Mr. Amoah said Ghana should move beyond short-term interventions whenever fuel prices rise and instead establish a reserve that would allow the government to purchase and store petroleum products when international prices are relatively low. According to him, the reserve could then be released when prices rise significantly, helping to cushion consumers while allowing the state to recover the cost of acquiring the stock.
He also proposed that a portion of fuel processed by local refineries be set aside for the strategic reserve. He suggested that between five and 10 per cent of refinery output could be allocated to the buffer to ensure the country has emergency stocks available during periods of severe market volatility or supply disruptions.
Mr. Amoah said such a reserve would be particularly useful if international petroleum prices increase sharply or if disruptions prevent fuel cargoes from reaching Ghana. He explained that having fuel already stored in the country would provide government with an immediate buffer instead of waiting for prices to stabilise before taking action.
His proposal comes amid a significant increase in fuel prices, with Mr. Amoah noting that diesel had risen from about GH¢14–GH¢16 per litre to nearly GH¢20 within a relatively short period.
He said the recent increases demonstrate the need for Ghana to develop a long-term mechanism capable of responding to international petroleum market volatility rather than relying solely on interventions after prices have already increased.
Mr. Amoah welcomed government’s recent intervention to reduce the price of diesel by GH¢2 per litre, but stressed that the measure should be treated as an interim intervention and not a long-term solution to recurring fuel price shocks.
He maintained that a well-managed strategic fuel reserve would strengthen Ghana’s energy security, protect consumers from extreme price increases and provide the country with greater resilience against unexpected disruptions in the international petroleum market.
Story by Freedom Etsey Lavoe