The Chamber of Petroleum Consumers (COPEC) has urged the Government to establish a strategic fuel stock programme to shield consumers from frequent fuel price increases triggered by volatility in the global oil market.
Mr Duncan Amoah, Executive Secretary of COPEC, said Ghana’s continued reliance on imported refined petroleum products made the country highly vulnerable to fluctuations in international oil prices.
Mr Amoah said Ghana remained a price taker in the global petroleum market and must adopt measures to reduce its exposure to external shocks.
He called for renewed efforts to build strategic petroleum reserves, saying the country should purchase and store fuel when global prices decline and release the stocks when prices rise.
Mr Amoah expressed concern that storage facilities of the Bulk Oil Storage and Transportation Company (BOST) were not adequately utilised during the recent period of falling fuel prices.
“You cannot have the tanks of BOST still empty at this point when, just a few weeks ago, prices were dropping and we could have taken advantage of that to get products into storage,” he said.
He explained that maintaining sufficient fuel reserves would enable the Government to cushion consumers from sudden increases in pump prices.
The call comes ahead of an anticipated increase in fuel prices from July 16, despite the relative stability of the Ghana cedi. Analysts have also warned that escalating tensions in the Middle East could drive global crude oil prices higher.
Mr Amoah further advocated strengthening Ghana’s local refining capacity and ensuring a reliable supply of crude oil to domestic refineries to reduce dependence on imported finished petroleum products.
He said the country’s inability to maintain strategic fuel reserves over the years had left consumers exposed whenever international oil prices increased.
“If prices go up tomorrow and government had stocked up a week or two earlier, it could intervene and say there is enough fuel in stock, so there’s no need to immediately apply the current spot prices to the market,” he said.
COPEC has therefore called on the Ministries of Energy and Finance to prioritise the development of strategic petroleum reserves and support investments in local refining as part of broader reforms to strengthen Ghana’s energy sector.
