President John Dramani Mahama has cautioned that Ghana is likely to experience a ripple effect from rising global crude oil prices, following escalating tensions in the Middle East. The recent exchange of missiles between Israel and Iran has already triggered a sharp increase in global oil benchmarks, raising concerns about potential domestic fuel price hikes.
During his ‘Thank You Tour’ in the Savannah Region on June 14, the President acknowledged the looming economic implications of the conflict and stressed that Ghana, despite its ongoing efforts to stabilise the economy, remains vulnerable to external shocks. The price volatility in international markets, particularly in oil, presents a significant risk for Ghana, which continues to rely on imports for refined petroleum products.
The global surge in crude prices, driven by fears of supply disruptions in one of the world’s most critical oil-producing regions, poses a direct challenge to countries like Ghana. Although the country produces crude oil, its dependence on imported refined fuels means global price increases often translate into higher local costs.
In response, the President has directed key government officials, including the Ministers of Finance and Energy, to monitor developments closely and prepare models to assess the possible impact on Ghana’s petroleum pricing and broader economic stability. The move aims to cushion the economy and consumers from abrupt fuel cost increases that could undermine economic progress.