Middle East tensions: Fuel price would have hit GHS23 without Cedi stability — NPA boss

The Chief Executive Officer of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, has attributed the moderation of fuel prices in Ghana amid Middle East tensions to the stability of the Ghana Cedi.

Currently, litre of petrol is now selling at GH¢11.57, while diesel is going for GH¢14.35 in Ghana.

This is despite escalating regional conflicts after the coordinated attacks by the United States and Israel on Iran, which have raised fears of global fuel supply disruptions through the Strait of Hormuz.

Speaking on Accra-based TV3’s New Day show on Monday, March 16, Edudzi Tamakloe explained that crude oil price hikes combined with a weaker Cedi could have pushed fuel prices to GHS23 per litre.

“If the Ghana Cedi today were to be trading at 15–16 per dollar, the price of petroleum product would have been like 23 Ghana Cedis for a litre.

“But because the current managers of the economy have been able to manage the stability of the Ghana Cedi for the past 13 months or more, it has anchored the pressure that this current conflict would have,” he said.

He also highlighted the role of NPA’s price floor mechanism in cushioning the impact on the downstream petroleum sector.

“The authority had put out the price floor, which I strongly believe is a good mechanism to protect the petroleum downstream… it has brought a lot of stability in terms of even protecting the entire petroleum downstream, which is a good thing,” Edudzi Tamakloe noted.

The NPA boss stressed that, while crude prices have risen globally, Ghana’s relative economic management has prevented the worst-case scenario and offered relief to consumers amid the ongoing geopolitical tensions.