Amid the gloomy picture surrounding Ghana’s energy sector due to the Middle East Crisis, former Minister of Power, Dr. Kwabena Donkor, is urging Ghanaians to adopt more efficient fuel consumption habits.
For the former energy minister, the geopolitical tensions in the Middle East is threatening to push global petroleum prices higher, and hence, another crucial way to mitigate the impact on households and businesses is the wise use of energy.
Speaking in an exclusive interview with The High Street Journal, Dr. Donkor said Ghana is unlikely to face a shortage of petroleum products.
However, he cautioned that pump prices could rise in the short term because global oil markets are highly sensitive to geopolitical developments. According to him, the biggest concern is not supply but the pricing impact triggered by uncertainty in global energy markets.
“I believe we will have the products. The challenge for us will be pricing for petroleum products,” he noted.
Middle East Conflict and Oil Market Reactions
The former minister, who has deep knowledge and experience in the energy sector, noted that whenever conflicts erupt in major oil-producing regions, particularly the Middle East, international benchmark prices such as Brent Crude and West Texas Intermediate (WTI) typically surge.
He said recent market movements already show signs of upward pressure on crude oil prices, which serve as the reference point for refined petroleum products imported into Ghana.
The implication, he explained, is that domestic pump prices could rise if the trend persists.
“Remember, pricing is very much dependent on sentiments, on market sentiments. And market sentiments are also dependent on geopolitics,” he noted.
He added, “So once there is turmoil, in terms of war, in a key producing region, it will impact pricing in the short term. And already looking at the current window, the price of crude, which is the reference point, whether it is Brent or its WTI, has gone up. And so it will, if so far true, our pump prices will go up.”
Caution Against Heavy Subsidies
Dr. Donkor warned against returning to heavy subsidy regimes that could create fiscal burdens for the government.
He referenced Ghana’s experience during the global health crisis triggered by COVID-19, when temporary relief measures such as free electricity and water later resulted in financial obligations that had to be repaid.
“Just as we benefited from a reduction in global prices and the strengthening of our Cedi against the dollar. So when the reverse also happens, fuel prices have to go up,” he stated.
He continued, “If we don’t want to accumulate a huge deficit, if we don’t want to go back into the situation where, during the period of COVID, we were told we had free electricity, free water, only for us to pay back later.
A Call for Efficient Fuel Use
Instead of relying on heavy subsidies, Dr. Donkor believes the most practical response for households and businesses is to improve fuel efficiency.
He urged motorists, transport operators, and industries to adopt smarter fuel consumption practices, including reducing unnecessary travel, maintaining vehicles properly, and improving logistics planning.
For him, he believes the threat is for a short time, and things will definitely return to normalcy. Ghanaians must therefore adjust their fuel usage so that the impact will be minimized.
“We just now have to be, as fuel prices go up, we just have to be more efficient in our use of fuel,” he advocated, adding that “Hopefully, and I personally think it’s a short-term phenomenon. I predict that six weeks from now. Yes, it’s a phenomenon. It’s not new.”
The Bottomline
According to Dr. Donkor, widespread fuel efficiency could generate several economic benefits for Ghana, particularly during periods of global energy volatility.
Reduced fuel consumption would lower the country’s import bill for refined petroleum products, ease pressure on foreign exchange reserves and support the stability of the Ghanaian cedi.
It would also help businesses contain operational costs, reduce inflationary pressures in transport and logistics, and improve energy security during global disruptions.
