Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributors (CBOD), Dr Patrick Kwaku Ofori, is making a strong case for Ghana to invest seriously in alternative fuels, including ethanol and other biofuels.
His call follows renewed disruptions in the global petroleum market, which have pushed up crude and refined-product prices and contributed to higher fuel prices in Ghana.
The latest developments have demonstrated how quickly geopolitical tensions far beyond Ghana’s borders can be transmitted into the domestic economy. Global supply disruptions have tightened oil markets, while refined products, particularly diesel, have experienced substantial price pressure.
Ghana’s downstream market has consequently faced renewed upward pressure, with new fuel prices taking effect from September 16.
For Dr Ofori, the repeated cycle should not simply trigger temporary measures to cushion consumers. It should force Ghana to reconsider the composition of the fuels powering its economy.
“It’s about time we look beyond the political discussions and politicians playing politics with crude oil prices,” he said.
Rather than repeatedly responding to external oil shocks after they occur, he wants Ghana to build a diversified energy base capable of reducing its vulnerability to international petroleum-market disruptions.
Central to his proposal is greater investment in research and development around alternative fuels. Dr Ofori specifically called for “research into ethanol, other biofuels, and having a diverse energy mix.”
The significance of such diversification is that transportation, industry, agriculture and commerce would not be exposed to a single dominant fuel source to the same extent.
He argues that a diversified fuel system could provide Ghana with additional options when international petroleum markets are disrupted, while potentially creating new opportunities around agriculture, processing, technology and domestic manufacturing.
Ghana’s current experience illustrates the vulnerability of an economy whose transport system remains heavily dependent on petroleum. When international supply is disrupted, higher crude and refined-product prices eventually filter into fuel prices, transport costs, and the operating costs of businesses.
Dr Ofori believes Ghana therefore needs to use the current pressure as an opportunity to invest in a more resilient energy architecture rather than repeatedly treating each price surge as an isolated crisis.
His proposal is ultimately for a deliberate energy transition in which petroleum remains part of the energy mix, but ethanol, biofuels and other alternatives receive sufficient research, investment and policy attention to become meaningful components of Ghana’s energy security.
