Explore sustainable ways to tackle persistent rising fuel prices – IES tells govt

The government must explore a long-term and more sustainable ways to curb the consistent and persistent rising of fuel prices on the local market, Executive Director of Institute of Energy Security (IES), Nana Amoasi VII, has said.

“The attempt by the government to suspend the price stabilisation and recovery levy is not well thought through in our estimation, and will not address the rising price of fuel in the country,” he said in an interview with the Ghanaian Times on the sidelines of Ghana Economic Forum (GEF) which ended in Accra last Wednesday.

The three-day programme was organised by the Business and Financial Times, an Accra-based newspaper.

It was on the theme “Strengthening Homegrown Policies to Underpin the National Digitisation Drive and Shared Financial Prosperity.”

In an interview with the Ghanaian Times after a panel discussion on the topic “Optimising Ghana’s Electricity Supply Mix and its Impact on Cost of Power,” Nana Amoasi VII, suggested that the government must bring Tema Oil Refinery (TOR) back to life to refine fuel locally.

“We should be able to bring TOR on stream and their books should be clean enough to source fuel from our own indigenous sources so that they can produce and make savings, because if you source crude oil from Ghana, freight cost is brought low ,” he said.

The Executive Director of  IES stressed that the  Bulk Oil Storage and Transportation (BOST) Company should be managed well to able to keep strategic fuel stock for the country.

Nana Amoasi VII urged politicians to stop playing politics with fuel and come out with measures to control its price.

He said the IES forecast showed that oil was likely to hit $100 per barrel before the end of the year.

Oil hit a three-year high above $86 a barrel on Friday, driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.

Nana Amoasi VII said the reduction in production by the Organisation of Petroleum Exporting Countries as the result of the COVID-Pandemic was driving the surge in crude oil prices on the international market.

“Winter is coming and am sure that the Europeans, Asians and Americans are preparing to brace that,” he said. 

“Apart from gas, the next fuel they have to rely on is oil so the demand of oil is going to go  high and technically that will drive up prices,” the IES Executive Director, said.

However, Nana Amoasi VII said the price of crude oil on the international market would moderate in March, after the Christmas festivities.

“What you see is that any time there is a peak, people will start to look for alternatives for oil and gas and may fall on coal and that will bring down demand in the long run,” he said.

Commenting on the Ghana National Petroleum Corporation’s acquisition of more stakes in Jubilee, and Ten oil blocks, Nana Amoasi VII, said it was a good move.

“GNPC increase its stake in the oil we produced as a country it means that we will derive more revenue from same and let’s pray that we have good price environment and it will inure to the advantage of the country, but more importantly it is not enough increase your stake, but position yourself to move to the operator where you can produce your own oil with minimal support from international oil companies,” said the IES Executive Director.

BY KINGSLEY ASARE