Ghana may see a sharp fuel price increase next week, with rates potentially hitting GH₵15 per litre, according to Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), due to escalating tensions between Israel and Iran.
Speaking to the Business and Financial Times, Dr. Oppong cautioned that some oil marketing companies might begin hoarding fuel to profit from the expected hike during the next pricing window.
The warning comes amid Ghana’s limited fuel reserves and a volatile global oil market, where Brent crude spiked by 13% on June 13 following the outbreak of the conflict.
Dr. Oppong highlighted Ghana’s vulnerability due to its overreliance on imported fuel—costing over US$400 million monthly—and the absence of a strategic fuel buffer system.
He noted that current fuel reserves may last less than two weeks, making it urgent for government to activate national buffer stock and restore refinery operations like the dormant Tema Oil Refinery (TOR).
Despite earlier projections of minor fuel price drops during the June 16 pricing window, COMAC warns these gains may be short-lived if the war drags on and global prices continue to climb.
COMAC also welcomed government’s recent suspension of the controversial GH₵1 D-Levy, following public backlash and fears of inflationary pressures amid international uncertainties.
In addition, Dr. Oppong urged the government to scrap marine gas oil (MGO) subsidies, arguing that they are ineffective and prone to abuse, with diverted usage undermining their intended purpose.
He said removing the MGO subsidy and enforcing proper pricing could save Ghana up to GH₵431 million annually and serve as an alternative revenue source to reduce energy sector debt.
Ultimately, COMAC is calling for urgent energy reforms, including investment in storage infrastructure, policy clarity, and a focus on self-sufficiency to protect the fuel supply chain from external shocks.