The Chamber of Petroleum Consumers (COPEC) has urged the Ghanaian government to establish a strategic petroleum reserve. This reserve would shield consumers from sudden increases in fuel prices and potential supply disruptions. The proposal aims to create a buffer against international market fluctuations.
COPEC suggests the state purchase and store petroleum products when global prices are favourable. These stored supplies would then be released onto the market when prices rise sharply. This mechanism would reduce the impact of sudden price hikes on Ghanaian consumers. The organisation also proposed channelling a portion of products from local refineries into this reserve.
This call comes amid recent significant increases in petroleum prices. Diesel, for example, has risen from approximately GHS 14 to GHS 16 per litre to nearly GHS 20 per litre in a short period. These price movements highlight the urgent need for Ghana to develop a long-term strategy. Such a strategy would manage international market volatility rather than relying on reactive interventions.
Duncan Amoah, the Executive Secretary of COPEC, emphasized the financial benefits of such a reserve. He stated that releasing stock purchased at lower prices, even at GHS 600 or GHS 700, would allow the government to recoup its investment. This approach would also help sustain stable fuel prices for consumers. He made these remarks on Channel One TV on Saturday, August 8.
Mr. Amoah further explained that the reserve could be deployed during severe price increases. It could also be used if international supply disruptions prevent fuel cargoes from reaching Ghana. He cited a scenario where prices jump from GHS 800 to GHS 2,000, stressing the importance of having such buffers. He welcomed the government’s recent decision to reduce diesel prices by GHS 2 per litre. However, he maintained that such measures should complement a long-term strategy, not replace it.
COPEC specifically suggested that between 5% and 10% of products processed by local refineries could be set aside. This allocation would gradually build the country’s strategic stock. This proactive measure would provide Ghana with greater energy security and economic stability. It would protect households and businesses from the unpredictable nature of global oil markets. The establishment of such a reserve would represent a significant policy shift towards long-term economic resilience.