The Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, is not fully satisfied with the National Petroleum Authority’s (NPA) reassurance that Ghana has enough fuel stock to last several weeks, arguing that the critical issue is not the quantity available but who controls it.
Speaking on JoyNews’ The Probe on Sunday, March 1, Mr Amoah acknowledged the NPA’s disclosure that the country has petrol stocks to last nearly seven weeks and diesel for over five weeks.
However, he reiterated that the stock is mostly owned by private entities, not the state.
“The truth of this is that you are dealing with private capital. The stocks you have now is not one that you can quantify as strategic stock or reserve that the state probably would have paid for or the state would probably have total control of. These are stocks coming from BDCs and other traders,” Mr Amoah explained.
This distinction between state-controlled strategic reserves and privately owned commercial stocks is crucial, according to the COPEC chief. While the NPA can monitor and report on stock levels, it cannot dictate pricing decisions or force private traders to release products at government-preferred rates.
Mr Amoah warned that because private capital owns the fuel, the government has no power to control what happens to it. Traders will make decisions based on their business interests, not public welfare, especially during a global crisis.
“If I was a trader and I woke up tomorrow to have to put stock on the market, I would definitely bear in mind the fact that these hostilities or tensions prevailing within the Middle East could affect the next cargo containment that I get down here. Would that affect my pricing decision? The answer would be yes,” he stated.
This means that even though Ghana physically has fuel in tanks, consumers should not expect prices to remain stable. Private traders will factor in the cost and risk of securing future supplies when pricing the products they currently hold.
He predicted that the impact of the Middle East tensions on global oil markets would soon reflect in local pump prices, potentially exceeding earlier forecasts.
“Private capital, as to whether we’ll be going for what you and I would expect, I think it will be a little higher than we originally had even projected. If you recall, the start of March, both COPEC and COMAS were quite certain that we’re going to be doing about one to three percent upwards on current pump prices,” he noted.
The recent surge in global crude prices past $91 per barrel following the blockade of the Strait of Hormuz supports this projection.
The price spike from the previous $67–69 range represents over a 30% jump in just 24 hours, and Amoah warned that if the conflict persists, crude could hit $100 per barrel.
Earlier on the same program, the NPA’s Director of Economic Regulation and Planning, Abass Ibrahim Tasunti, had assured Ghanaians that the authority has plans in place to ensure fuel availability. He disclosed current stock levels, daily import discharges, and local production from Tema Oil Refinery as evidence that the country is well-supplied.
Mr Amoah urged the public to understand that the NPA’s assurance of “enough stock” does not translate to “stable prices.”
He called for a broader conversation about establishing a true strategic reserve that would give the state more control over the country’s fuel security during emergencies.
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Source: www.myjoyonline.com