Set up petroleum reserve fund to stabilise fuel prices – COPEC urges government

The Chamber of Petroleum Consumers, Ghana (COPEC), has urged the government to establish a Special Petroleum Reserve Fund to help cushion motorists and businesses against sharp increases in fuel prices.

According to the Head of Research and Training at COPEC, Paul Ofori, the proposed fund would allow the state to import and store petroleum products when international prices are low and release them onto the local market during periods of price hikes.

He argued that such a mechanism would help stabilise pump prices and ease the financial burden on consumers.

COPEC’s call follows its latest projections, which show that petrol prices are expected to rise by about 3.38 percent, increasing from an average of GH¢12.18 per litre to GH¢12.59.

Diesel prices are forecast to increase even more steeply, by 9.81 percent, rising from GH¢12.49 per litre to GH¢13.71.

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“We have advised the government to explore measures that can provide some level of security and help tame pump prices. Unfortunately, those proposals have not been taken up,” Paul Ofori said.

“We were hopeful that the government would consider setting up a special petroleum fund so that when international prices are favourable, some products can be imported and stored and when prices rise, the government can release them onto the local market to ensure stability,” he added.

Ofori explained that a petroleum reserve fund would give the government the flexibility to act decisively.

For many Ghanaians, fuel price hikes translate directly into higher transport fares, increased cost of goods, and added pressure on household budgets.

COPEC believes that a reserve fund could serve as a buffer, protecting livelihoods while ensuring businesses remain competitive.

SA/MA

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