Fuel Security Warning: Minority calls for supply rethink amid geopolitical unrest
By Eugene Davis
The Minority in Parliament has urged government to explore alternative sources of fuel supply through collaboration with Bulk Distribution Companies (BDCs), especially if any BDCs currently rely on Iranian suppliers.
Additionally, the caucus also advised that the country should begin to store more liquid fuels now to strengthen our buffer and avoid a crisis.
These calls were made by the Deputy Ranking Member of the Committee, Collins Adomako Mensah after a meeting between Parliament’s Energy Committee and key energy sector stakeholders.
Speaking to journalists after a meeting between Parliament’s Energy Committee and key energy sector stakeholders, he urged the government to adopt proactive and pragmatic measures to avert a possible fuel crisis.
He underscored the need for the National Petroleum Authority (NPA) to explore alternative sources of fuel supply through collaboration with Bulk Distribution Companies (BDCs), especially if any BDCs currently rely on Iranian suppliers.
“We must begin to store more liquid fuels now to strengthen our buffer and avoid a crisis. Every day the situation in the Middle East worsens. Iran is a significant oil producer, and continued instability could push prices even higher,” he warned. “This has serious implications for us, as we import nearly all of our refined petroleum products.”
According to the caucus, the growing geopolitical tensions have led to rising global crude oil prices and a withdrawal of some investors from operations involving the Ghana National Petroleum Corporation (GNPC).
On the delay in GNPC’s Pecan oil field project, Adomako Mensah noted that a final investment decision has stalled due to geopolitical tensions linked to Russia, a key partner in the project. He explained that financiers have pulled out due to the ongoing Russia-Ukraine war, viewing investments as indirectly supporting the conflict.
Despite these setbacks, the CEO of the NPA has disclosed that Ghana currently holds over 200 million litres of petrol and 150 million litres of diesel—levels he described as adequate to stabilize supply in the short-to-medium term.
However, the Energy Minister has revealed that the country is expected to spend over $1 billion this year on liquid fuels for thermal power plants, largely due to a shortfall in natural gas supply. Ghana currently relies on expensive diesel and light crude oil to keep the plants running.
Meanwhile, the Energy Ministry has delayed implementation of the controversial Energy Sector Levies (Amendment) Act, 2025—which was expected to add GHS 1 per litre of petrol and diesel, and an extra 20 pesewas per kilogram of LPG—due to the sharp increase in global oil prices.
The Chamber of Petroleum Consumers (COPEC) has also cautioned that rising Middle East tensions could trigger fuel price hikes during the first pricing window of July. COPEC warned that recent U.S. airstrikes on Iranian nuclear sites could escalate the crisis further, impacting global oil supply and fuel-importing countries like Ghana.
There is also growing anxiety over the possible closure of the Strait of Hormuz by Iran—a strategic chokepoint through which nearly 20% of the world’s oil and gas supply passes—raising fears of more disruptions and price volatility.
