COPEC warns fuel prices could hit GH¢18 per litre in April

The Chamber of Petroleum Consumers has cautioned that fuel prices in Ghana could rise to between GH¢17 and GH¢18 per litre in the first pricing window of April.

The projected increase is being linked to escalating geopolitical tensions in the Middle East, which are disrupting supply chains and triggering volatility in global crude oil prices.

Executive Secretary of COPEC, Duncan Amoah, in an interview with Citi Business News, indicated that while the immediate impact may be moderate, the situation could worsen by May if supply challenges persist.

“April will be very okay, because there is enough in country. Prices may differ, but you may not be so lucky a month after, because clearly, the global supply situation is grinding slowly. What you have now that has even sustained us is because the G7 and America itself have decided to put out reserve stock.

“They will not have that stock forever. They will not be able to put out that stock, I mean, in perpetuity. So it calls for us as a country to start looking for strategic stock immediately,” he said.

He therefore urged the government to adopt proactive measures, including building strategic fuel reserves, to cushion the country against potential shocks.

“I have said, and I would repeat, it will be better to sustain the Ghanaian petroleum prices at the GH¢15, GH¢14, GH¢13 region than to wait for it to get to GH¢17, GH¢18, which is probably what you are going to see in the next window, or wait for it to get even worse before you plan.

“So whatever can be done, if the finance minister can find some contingency funds and help BOST to get some product to store, it is high time we do so now,” he added.

Duncan Amoah further noted that current prices are already hovering around GH¢15 to GH¢16, with a strong likelihood of further increases in the coming weeks.

“We are around GH¢15, GH¢16 almost. It is potentially likely you could be doing about GH¢17, GH¢18 by the first window in April. That should not be the only worry. The supply disruptions that is happening within the Gulf could also bite so badly if it persists to such a time that cargoes are no longer coming in as planned,” he said.

He also pointed to disruptions in shipping through the Strait of Hormuz, which have tightened global supply and heightened price volatility, with Brent crude at some point exceeding $100 per barrel.

The development is expected to have a direct impact on Ghana, potentially leading to higher fuel prices if the situation continues.