Future Price Of Crude Oil

The prediction that crude oil prices are likely to hit $100 per barrel by next year must remind oil importing countries that the future would be bleak and difficult.

Indeed, oil prices have more than doubled from around $30 a barrel in 2003 to close to $80 in 2007, yet there are no indications that the forces pushing up the prices would be easing in the near future.

It is a known fact that high fuel prices affect the lives of the people in oil importing countries as it affects prices of goods and services in those countries.

In Ghana, crude oil prices determine the prices of foodstuffs as well as transport fares and reflect in the general cost of living of the people.

It would be necessary for the country to control its oil consumption so that the chunk of the country's foreign exchange earnings would not go into crude oil importation.

Until Ghana starts to drill oil the country must take steps to control its oil consumption, otherwise the importation of crude oil could destabilize the national economy and the country's development agenda would be in jeopardy.

We are not suggesting that the use of fuel should be controlled as was done in the mid-seventies, but vehicle owners must be made to understand the poor situation so that they know how much it costs the national economy when they drive their vehicles around on fruitless ventures.

This is the reason why many countries in the West African sub-region, especially the French-speaking countries encourage their people to own motor cycles, whose fuel consumption is far lower than that of car.

From these facts, nothing can save the country apart from the control of fuel use.

It cannot be said that since a few individuals could afford fuel at a high price other members of the society could also afford it.
The national interest supersedes those of individuals.

Even if Ghana becomes an oil exporting country it would be necessary to control fuel use in order to reserve enough money to finance the provision of basic amenities and the improvement of infrastructure.

Next year would be a crucial year for Ghana in view of the fact that there would be general elections. It would be the time when politicians would be criss-crossing the country to campaign for votes and large quantities of fuel would go into those travels.

Incidentally, this is the same period oil prices are predicted to be sky-rocketing. The government has to do something about it now before it is too late.

DAILY GUIDE says since Ghana cannot do anything about the fixing of the price of crude oil, it must put measures in place to check excessive use of fuel in the country.