The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has explained that recent increases in fuel prices in Ghana are largely driven by global market forces rather than the ongoing war in the Middle East.

Speaking on the Citizen Show on Accra 100.5 FM, hosted by Nana Otu Darko on March 2, Amoah said fuel is traded globally using international benchmark prices, which do not differ significantly regardless of where the product is purchased.

According to him, global crude oil benchmarks such as Brent Crude and West Texas Intermediate (WTI) determine pricing trends.

Since the outbreak of war over the weekend, oil prices have risen by about 12 percent.

Brent crude is currently trading at around 85 dollars per barrel, while WTI is hovering near 78 dollars per barrel, up from approximately 67 dollars in recent weeks.

He explained that refineries in Europe and other parts of the world purchase crude oil at these benchmark prices.

When crude prices rise sharply—from about 67 dollars to between 78 and 80 dollars per barrel—refineries adjust their prices for finished petroleum products in anticipation of further increases.

As a result, countries like Ghana that import refined fuel are compelled to pay more.

Amoah stressed that although the war may influence global sentiment, the primary reason for local price adjustments is the international market structure.

“Fuel prices at the pump reflect global crude oil movements and exchange rate factors, not simply the war itself,” he indicated.

Touching on Ghana’s fuel reserves, Amoah clarified that the country currently does not have a robust strategic petroleum reserve capable of stabilising prices in times of sharp international increases. He referenced the role of the Bulk Oil Storage and Transportation Company Limited (BOST), which is mandated to manage strategic reserves.

He noted that under normal circumstances, funds from a reserve margin should allow BOST to store fuel for national security purposes. Such reserves could be released at predetermined prices to cushion consumers when international prices surge significantly, from, for example, 800 to 1,000 dollars per metric tonne.

However, Amoah pointed out that most of the fuel currently available in the country is owned by private Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCs), not the state.

Therefore, private importers cannot be expected to maintain old prices when international market rates have increased.

Despite the price adjustments, he assured the public that there is no fuel shortage in Ghana.

“We have enough fuel in the country,” he stated, adding that while supply is stable, there is no national reserve strong enough to guarantee that prices will remain unchanged during prolonged international price hikes.

He suggested that Ghana should consider strengthening its strategic reserve system by setting aside funds to procure and store fuel during periods of lower international prices.

This, he said, would help cushion the country if global tensions persist and oil prices continue to climb.