The Chamber of Petroleum Consumers (COPEC) is calling on the Ghanaian government to take urgent action as fuel prices continue to rise for the third consecutive time this year. The latest pricing window in February has brought yet another round of increases, following similar trends observed in January, leaving consumers and businesses grappling with higher costs.
Fuel prices at major oil marketing companies have surged, with Shell increasing the price of petrol from GH₵15.59 per litre to GH₵16.23, while diesel now sells at GH₵16.20, up from GH₵15.79. Star Oil has maintained its petrol price at GH₵14.99 but has raised diesel prices from GH₵14.99 to GH₵15.37. These adjustments reflect the broader economic challenges affecting the petroleum sector, particularly the depreciation of the Ghanaian cedi and volatility in global crude oil prices, which continue to drive up importation costs.
COPEC’s Executive Secretary, Duncan Amoah, has warned that the continuous rise in fuel prices could have long-term negative consequences on the economy, affecting businesses, transportation costs, and household budgets. He emphasized that the government must adopt a comprehensive strategy to stabilize fuel prices and cushion consumers against further economic hardship.
“Clearly, we are not out of the woods, and something has to give. A plan or a strategy needs to be in place to cushion all of us. You can’t continue to have your refinery down. You can’t continue to import everything,” Amoah stated.
He further argued that Ghana’s continued reliance on fuel imports makes the country vulnerable to global market fluctuations. Without a functioning refinery or a strategic petroleum reserve, the country remains a price taker, leaving consumers at the mercy of international price movements.
“You can’t continue not to have a strategic reserve at this point. You can’t continue to be a price taker and expect that your people will get fuel at the price you want it. Something needs to be done,” he added.
The rising cost of fuel is not just an economic concern but also a social issue, as it directly affects transportation fares, the prices of goods and services, and the overall cost of living. Public transport operators have already hinted at possible fare adjustments, citing the increased cost of fuel as a major factor. This could lead to inflationary pressures, making basic necessities even more expensive for the average Ghanaian.
Consumers have expressed frustration over the recurrent price hikes, with many questioning the government’s approach to managing the situation. Some have called for greater transparency in the pricing of petroleum products, as well as measures to ensure efficiency in the distribution chain to prevent unnecessary cost escalations.
Economic analysts have also warned that if fuel prices continue on this trajectory, businesses may be forced to increase the prices of goods and services to offset rising operational costs. This could lead to a ripple effect across various sectors, exacerbating the economic hardship already being experienced by many Ghanaians.
In light of these concerns, COPEC is urging the government to consider immediate interventions such as revamping the Tema Oil Refinery (TOR) to reduce dependence on imported petroleum products. The refinery, which has been plagued by operational challenges, has the potential to significantly cut down the cost of fuel if properly managed and made fully functional.
Another key recommendation from COPEC is the establishment of a strategic petroleum reserve, which would allow the government to store fuel when prices are relatively low and release it during periods of high market volatility. This would provide a buffer against sudden price surges and help stabilize the domestic market.
Furthermore, COPEC has called on the government to review the existing tax structure on petroleum products. Taxes and levies make up a significant portion of the pump price, and a reduction in some of these charges could help ease the financial burden on consumers. While taxes on fuel contribute to government revenue, there is growing concern that the current tax regime is contributing to the frequent increases in fuel prices.
The government, on the other hand, has attributed the rising fuel costs to external factors, including the depreciation of the cedi and increasing global crude oil prices. Officials have maintained that Ghana, like many other countries, is facing economic pressures beyond its control. However, COPEC insists that internal measures, such as improving the efficiency of the petroleum supply chain and reducing dependency on fuel imports, could help mitigate the impact on consumers.
The current situation has reignited discussions on the need for Ghana to explore alternative energy sources and reduce its reliance on fossil fuels. Some experts have suggested that investing in renewable energy, such as solar and wind power, could help lessen the country’s dependence on petroleum products in the long term. Others have also proposed the adoption of electric vehicles and incentives to promote fuel-efficient transportation systems.
Meanwhile, COPEC continues to monitor the fuel pricing trends and has vowed to advocate for policies that will bring relief to consumers. The organization has indicated that it will engage stakeholders, including the National Petroleum Authority (NPA) and the Ministry of Energy, to push for immediate interventions.
As fuel prices remain a major concern for businesses and households, the coming weeks will be crucial in determining whether the government will take decisive action to address the issue. Ghanaians are looking to policymakers for solutions that will not only provide short-term relief but also ensure long-term stability in the petroleum sector.
With the pressure mounting, it remains to be seen whether the government will heed COPEC’s call and implement measures to mitigate the rising cost of fuel. Until then, consumers will have to brace themselves for further price adjustments in the petroleum sector, with all the economic implications that come with it.
