Ghana must learn from oil-producing countries to stabilize fuel prices – Duncan Amoah

The Chamber of Petroleum Consumers (COPEC) has urged Ghana to adopt the fuel management strategies of other oil-producing countries, arguing that better planning would protect consumers from the frequent fuel price shocks caused by developments on the international market.

During an interview, COPEC Executive Secretary Duncan Amoah said it is unacceptable for an oil-producing country like Ghana to remain highly exposed to fluctuations in global crude oil prices.

According to him, several countries in the Middle East have managed to keep domestic fuel prices relatively stable despite ongoing regional conflicts because of deliberate long-term planning and effective fuel management systems.

“You can check the cost of fuel in the countries across the Gulf, Oman, Qatar, Saudi, the UAE itself, Iraq, Kuwait.”

Amoah said the experience of these countries demonstrates that conflict alone does not automatically translate into higher fuel prices for consumers if governments have the right policies in place.

“You won’t be surprised that because of planning, where the bombs are flying, their fuel costs do not exactly become so steep, so high, because the bombs are flying across those places.”

He also pointed to Ukraine, which has remained at war for years, saying fuel prices there have not risen as sharply as in Ghana despite the conflict.

The COPEC Executive Secretary argued that Ghana’s current fuel pricing system leaves consumers vulnerable because virtually every international development is reflected at the pumps.

“Everything that happens in Sri Lanka or anywhere in the world, the Ghanaian fuel consumer will have to pay for it.”

He maintained that the country needs a long-term strategy that shields consumers from external shocks rather than relying on periodic interventions whenever global oil prices rise.

The comments come after the government announced a GH¢2 per litre reduction in diesel prices, with part of the cost being absorbed through the Unified Petroleum Pricing Fund (UPPF) to cushion consumers from rising international petroleum prices amid renewed geopolitical tensions.