Middle East Conflict: Ghana’s fuel supply stable, price hikes may pose challenges

The Ministry of Energy has assured that Ghana does not face an immediate fuel shortage, despite the conflict in the Middle East but warned that the more pressing issue lies in the potential fluctuations in domestic fuel prices.

According to Ministry, the country has built enough fuel reserves to meet short-term demands in a global economic shock such as the ongoing conflict in the Gulf region.

During an interview on Channel One TV, on Monday, March 9, Technical Advisor at the Ministry of Energy and Green Transition, Dr. Yussif Sulemana, emphasized that while petroleum products currently are currently available, a prolonged war could force Oil Marketing Companies to increase their prices.

“We are not immediately threatened by the supply or the availability of the product. What we are immediately threatened with is the price. Are we able to maintain the price? That is a big question that we are looking at,” he stated.

His comments come as the war by the U.S and Israel against Iran enters day 10 and has disrupted key oil supply routes, especially the Strait of Hormuz. The global oil market has already reacted to these tensions, with crude oil prices going beyond $100 per barrel for the first time since 2022, pointing to possible price shocks for petroleum-importing countries like Ghana.

While acknowledging that continuous global disruptions could eventually impact supply chains, Dr. Sulemana noted that the government’s immediate focus is to ensure a steady supply of petroleum products across the country.

“We have only to ensure that we maintain the availability of supply. After we made the announcement, we have been working closely with the NPA, and they have given us the assurance that we can go beyond the five weeks,” he explained.

The Technical Advisor further revealed that additional shipments of petroleum have already arrived at the ports, waiting to be cleared to boost the country’s reserve stocks.

“We have some ships that have been docked at the Harbour, ready to discharge. So, if these ships are discharged, we can go up to 10 weeks,” he added.