Ghana’s ¢2 diesel relief welcomed but COPEC calls for lasting fuel strategy

The government’s decision to reduce the impact of rising diesel prices by ¢2 per litre is a positive step, but it will not resolve Ghana’s wider fuel-price problems, according to Chamber of Petroleum Consumers (COPEC) Executive Secretary Duncan Amoah.

The intervention was announced after another increase in petroleum prices, with the government seeking to cushion consumers from the immediate effect of higher diesel costs. However, Mr Amoah said the measure should not be treated as a long-term answer to repeated fuel price shocks.

Speaking on JoyNews’ PM Express Business Edition on Thursday, he acknowledged the relief provided by the policy but said a more permanent solution was needed.

“I’m happy with government’s intervention, but that is not enough.”

Mr Amoah said Ghana should develop a sustainable system capable of protecting consumers whenever international oil prices rise. In his view, occasional government support may ease pressure in the short term but cannot provide lasting certainty for households, businesses or transport operators.

“You will need a longer-term sustainable programme.”

He urged the authorities to make the creation of a strategic fuel reserve programme a priority. Such a reserve, he argued, would provide the country with greater protection against sudden movements in global oil prices and reduce the effect of those changes on the domestic market.

“A strategic reserve programme should be the way forward, and not the kind of interventions we are seeing.”

The COPEC executive secretary said the government deserved credit for acting in response to the latest price increase, but warned that similar interventions would be difficult to maintain indefinitely.

“It is positive, but it is not sustainable.”

The latest rise in petroleum prices has renewed concerns about the wider cost of fuel in Ghana and its effect on the economy. Higher diesel prices can increase transport fares, raise operating costs for businesses and place additional pressure on household budgets.

The ¢2-per-litre intervention is aimed particularly at easing the burden on commercial transport operators and businesses that rely heavily on diesel, while also offering some immediate support to individual consumers.

Mr Amoah nevertheless maintained that the government should now focus on measures designed to deliver stability over a longer period. He said a strategic reserve would be a more dependable buffer against volatility in the global oil market than periodic financial relief.

His comments reflect growing concern over the repeated impact of petroleum price increases on consumers and businesses. While the government’s latest decision has been welcomed as a short-term measure, COPEC believes Ghana needs a structured fuel policy that can reduce the need for emergency interventions whenever prices rise.

The organisation’s position is that a permanent reserve system would give the country more flexibility when international market conditions change, while helping to limit the disruption caused by sudden increases in the local price of diesel and other petroleum products.