The Africa Sustainable Energy Centre (ASEC) is calling on government to urgently implement measures that could protect Ghanaian consumers from anticipated increases in fuel prices, driven by the escalating conflict between Israel and Iran.
In a statement, ASEC warned that any ripple effect on global petroleum prices could place a significant burden on households and businesses across the country.
The energy policy think tank pointed to the Gold for Oil initiative as a critical tool the government should fully leverage to counteract fuel price volatility amid global uncertainty.
“One critical measure is the effective implementation of the Gold for Oil policy, a strategy designed to secure stable petroleum supplies while minimising the adverse effects of cedi depreciation on fuel prices.
“By reducing pressure on foreign exchange reserves, this policy can help cushion pump prices during this period of global uncertainty and keep them within a manageable range for consumers. To fully realise its benefits, the Gold for Oil programme must be executed with enhanced transparency and accountability, ensuring that its price-stabilising potential is maximised,” ASEC explained.
While reiterating the need for the Price Stabilisation and Recovery Levy (PSRL) to play a stabilising role, ASEC rejected suggestions that a minor rise in fuel prices would be negligible.
According to ASEC, even minor hikes can compound the economic strain on citizens, especially in a context where many are already grappling with high living costs.
“Every effort must be made to avoid further burden on Ghanaians,” ASEC stated.
The organisation further highlighted the urgent need to restore full operations at the Tema Oil Refinery (TOR), advocating for expanded capacity to enable the local processing of Ghana’s crude oil.
“This will help reduce our vulnerability to international geopolitical disruptions. The continued dormancy of TOR has deprived Ghana of the full benefit of its crude oil production.”
ASEC maintained that reviving TOR, ensuring it operates efficiently, and equipping it with sufficient financial backing would help buffer the economy from external shocks.
“It would be ideal for the government to revive TOR, provide strong financial guarantees, and renegotiate terms for TOR to be the first buyers of crude production before export. This would, in fact, be the best-case scenario for Ghana,” ASEC argued.
The Centre concluded that these measures must be implemented with urgency to reduce inflation and support the country’s economic stability.
