The Chamber of Petroleum Consumers (COPEC) has issued a warning that rising tensions in the Middle East may cause fuel prices to climb during the first pricing window of July.
The conflict between Iran and Israel has escalated recently, especially after U.S. airstrikes on three Iranian nuclear sites. This situation could seriously disrupt global oil supply, hitting countries like Ghana that rely heavily on imported fuel.
A major worry is the potential closure of the Strait of Hormuz, a vital route where about 20% of the world’s oil and gas passes through. If blocked, it could trigger supply shortages and wild price swings.
COPEC’s Executive Secretary, Duncan Amoah, told Citi Business News that the rising crude oil prices could quickly translate into higher fuel costs locally. He warned that bulk distributors (BDCs) might raise prices first because it’s riskier to bring in cargo amid the tensions, which will then force oil marketing companies (OMCs) to follow suit.
“Given the current situation, it’s likely some BDCs will adjust their prices upwards, and OMCs will follow since they buy from the BDCs,” Amoah explained.
While Ghanaians enjoyed some relief with June’s second pricing window, Amoah doesn’t expect that to last into July. Typically, changes in crude oil prices affect fuel costs within 5 to 7 days, and with the recent global price hikes, he expects upward adjustments soon.
On a positive note, Amoah praised the government’s move to suspend the planned GH¢1 fuel levy under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL).
He also called on the government to expedite the revival of the Tema Oil Refinery, which is currently slated to resume full operations by October 2025. Getting the refinery running again, Amoah said, could help ease future price pressures.
