An energy expert, Sampson Addae, has called on Ghana to explore stronger oil supply arrangements with Nigeria to cushion the nation from the impact of rising fuel prices triggered by global supply disruptions.
Speaking in an interview on A1 Radio, Mr. Addae pointed to ongoing geopolitical tensions in the Middle East, particularly around the Strait of Hormuz—a key global oil transit route—where restrictions on the movement of oil vessels have disrupted thousands of shipments, significantly affecting global supply.
“The Middle East contributes about 20 percent of global fuel supply. When demand is so high, prices shoot up. Fuel prices have already risen in countries such as the UK, the US, and Spain,” he said.
To mitigate the impact on Ghana, Mr. Addae proposed several measures, including negotiating oil supply arrangements with Nigeria, which produces about 4 million barrels per day compared with Ghana’s 150,000–200,000 barrels. He explained that sourcing oil regionally could offer more stable and potentially cheaper access than relying entirely on the international market.
“The government should negotiate with Nigeria to buy oil at prices that are not linked directly to the global market. This will help us avoid sudden shocks caused by international crises,” he said.
He also suggested exploring alternative short-term supply options within the region, reviewing tax components on fuel prices, and temporarily suspending certain levies such as the one cedi excise, the special petroleum tax, and the price stabilization recovery levy to ease the burden on consumers.
Mr. Addae further emphasized the importance of strengthening local refining capacity to reduce long-term dependence on imported fuel.
“Without urgent interventions, rising fuel prices will increase transport costs and contribute to inflation, affecting everyday life for ordinary Ghanaians,” he warned.
A1 Radio | 101.1 Mhz | Gifty Eyram Kudiabor | Bolgatanga
