Fuel prices to hit GH¢18 per litre in April - COPEC

Ghana’s fuel prices could soar to between GH¢17 and GH¢18 per litre by the first pricing window of April, according to the Chamber of Petroleum Consumers (COPEC).

The forecasted price hike comes amidst mounting concerns over escalating geopolitical tensions in the Middle East, which are straining global crude oil supply chains and fueling volatility in international oil markets.

In an interview with Citi Business News, Duncan Amoah, Executive Secretary of COPEC, warned that the situation could worsen beyond April, especially if current geopolitical instability persists.

He emphasized that while Ghana may not face the full brunt of price increases in the immediate term, the country’s fuel supply could be significantly impacted by May due to the potential for further disruptions in global oil supplies.

How 'chop bar' owners are helping contractors work more efficiently

The primary cause of the projected price increase is the instability in the Middle East, which has already begun to affect oil supply chains worldwide. The tensions are threatening to disrupt the flow of crude oil, which could drive prices even higher.

While the G7 and the United States have been releasing reserve stocks to stabilize the market temporarily, COPEC cautions that this measure will not last indefinitely.

“The G7 and America have decided to release their reserve stocks to stabilize prices, but they won’t be able to continue this indefinitely. We need to be proactive as a country and start building strategic fuel reserves,” Duncan Amoah said.

COPEC is calling on the government to take immediate action by securing contingency funds to purchase and store fuel reserves. This would help buffer Ghana against potential price shocks in the coming months.

Amoah stressed the importance of preparing for a worst-case scenario where the price of fuel could rise beyond GH¢18 per litre, which he predicts could happen by the first window of April.

“It is better to sustain Ghana’s fuel prices at around GH¢13 to GH¢15 per litre now, rather than waiting for the situation to worsen and seeing prices hit GH¢17 or GH¢18. The time to act is now,” he added.

COPEC is urging all stakeholders, including the Ministry of Finance and the Bulk Oil Storage and Transport Company (BOST), to prioritize strategic fuel stockpiling to mitigate future price shocks.