By:Kenneth Appiah Bani
The Chamber of Petroleum Consumers (COPEC) has issued a caution to Ghanaians, warning that escalating geopolitical tensions in the Middle East could trigger a hike in fuel prices in the first pricing window of July.
The alert follows recent U.S. airstrikes on three Iranian nuclear facilities, a development that has intensified hostilities between Iran and Israel. According to COPEC, these events could have significant implications for global crude oil supply, particularly for oil-importing countries like Ghana.
One of the key concerns raised is the potential closure of the Strait of Hormuz by Iran. This strategic waterway handles nearly 20% of the world’s oil and gas shipments, and any disruption could severely affect supply chains and fuel pricing.
In an interview with Citi Business News, COPEC’s Executive Secretary, Mr. Duncan Amoah, highlighted the looming risk of upward price adjustments due to the heightened geopolitical instability.
“This week is likely to see a lot of activity on the international front as far as fuel pricing is concerned. Ghana cannot be insulated from the impact,” Mr. Amoah stated. “If Bulk Distribution Companies (BDCs) begin to factor in the increased risk and raise their prices, Oil Marketing Companies (OMCs) will be compelled to follow suit.”
Although consumers enjoyed some relief during the second pricing window of June, COPEC does not expect that trend to continue. Mr. Amoah anticipates that crude oil price fluctuations will begin reflecting at local pumps within a week, possibly resulting in upward adjustments.
“Anytime crude prices rise, we usually see the impact within 5 to 7 days. This coming week could see unfriendly global prices, and OMCs may have no choice but to adjust pump prices accordingly,” he explained.
COPEC is urging Ghanaians to prepare for potential increases and has called on policymakers to track global developments closely and adopt measures to cushion the impact on consumers.
In a related development, COPEC has welcomed government’s decision to suspend the planned GH¢1 increment under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL). Mr. Amoah lauded this move as a step in the right direction.
He also reiterated COPEC’s longstanding call for the revival of the Tema Oil Refinery (TOR). While TOR management has indicated plans to resume full operations by October 2025, COPEC believes expedited action is necessary to strengthen Ghana’s energy security and reduce reliance on imported refined products.
