If there was a time the country needed to revisit the conversation about establishing strategic fuel stocks, former Minister for Power, Dr. Kwabena Donkor, believes the time is now.
This advocacy is coming at a time when tensions in the Middle East have disrupted global oil supply and pushed energy prices higher.
The former chairman of the Parliamentary Select Committee on Mines and Energy is urging Ghana to urgently establish strategic petroleum reserves funded through a dedicated public levy.
Speaking in an exclusive interview with The High Street Journal, Dr. Donkor argued that Ghana currently lacks true strategic petroleum reserves and instead maintains only operational stocks, which serve routine supply needs rather than emergency preparedness.
“We don’t have strategic stocks now. We have operational stocks. The two are not the same,” he clarified.
Strategic Reserves for National Security
Dr. Donkor explained that strategic petroleum stocks must be deliberately funded and protected because they serve as a national insurance policy during crises.
His preferred model is to create a dedicated strategic stock levy, financed by the public purse, to build and maintain reserves that can be used only during emergencies.
Under his proposal, the stocks would be stored by the Bulk Oil Storage and Transportation Company (BOST) in its depots across the country but would remain under the direct control of the Energy Minister, ensuring that they are released only when necessary.
“Strategic stocks must be funded. How do we fund it? My preference is for strategic stocks to be funded by the public purse through a levy. That’s a strategic stock levy,” he noted.
He added, “And because that will be meant purely for strategic stock, that stock, where it is available, should be under the control of the minister. BOST will be the instrument of storing through their depots. But those will be separated from operational stocks. So you can only release strategic stocks under the instruction of the minister when there is a case to release strategic stocks.”
Lessons from the Middle East Conflict
Dr. Donkor said the ongoing conflict in the Middle East has once again exposed the vulnerability of oil-importing countries like Ghana to global supply shocks.
With the region accounting for a large share of the world’s oil production, escalating tensions could disrupt supply chains and trigger sharp price increases worldwide.
According to him, such events raise an important question of why Ghana still lacks a properly funded strategic reserve system despite its exposure to external energy shocks.
Why BDCs Should Not Bear the Burden
Some industry players have suggested requiring Bulk Distribution Companies (BDCs) to maintain mandatory reserves. But Dr. Donkor rejected that approach.
He warned that forcing private companies to hold strategic reserves simply transfers government responsibility to the private sector, which ultimately passes the cost on to consumers.
“My preference is that these strategic stocks should be publicly funded. Others have argued that we can ask BDCs to keep a certain stock. It just means we are transferring our responsibility. And it comes at a cost. And that is one of the reasons why the BOST levy, for BOST to build more storage tanks and more depots across the country,” he noted.
A Necessary National Investment
For Dr. Donkor, establishing strategic petroleum reserves is not an optional policy choice but a critical national safeguard.
“Having a levy for strategic stocks is not a luxury,” he said. “It is a necessity.”
As geopolitical tensions continue to shake global energy markets, his call underscores a broader debate about how Ghana can shield its economy and consumers from sudden fuel supply disruptions and price shocks.
