Finance Minister, Cassiel Ato Forson, says that Ghana is well positioned to withstand potential shocks in the global petroleum market despite growing concerns over geopolitical conflicts that could impact fuel supplies and prices worldwide.
Speaking in an interview with Bloomberg, Dr. Forson acknowledged that ongoing conflicts in some parts of the world pose challenges to the petroleum sector, particularly with regard to the pricing of petroleum products. However, he emphasized that fuel availability is not an immediate concern for Ghana.
According to the Finance Minister, Ghana currently produces approximately 40 percent of its petroleum products locally, allowing the country to meet a significant portion of its domestic fuel demand.
He noted that the remaining supply is largely sourced from the Dangote Refinery in Nigeria and other international suppliers, ensuring a stable flow of petroleum products into the country.
Dr. Forson explained that while supply remains relatively secure, fluctuations in global oil prices resulting from international conflicts could exert upward pressure on fuel prices. He, however, stressed that Ghana’s petroleum pricing framework places the country in a stronger position to manage such developments.
“The challenge has to do with price increases,” he said, adding that one of the advantages Ghana enjoys is the absence of fuel subsidies.
Unlike some countries that spend heavily to keep fuel prices artificially low, Ghana’s deregulated petroleum sector allows prices to adjust to market conditions without creating significant fiscal pressures on government finances.
The Finance Minister further disclosed that Ghana has built substantial reserves and maintains sufficient access to foreign exchange, particularly U.S. dollars, to support the importation of petroleum products when needed.
He said these measures provide an additional buffer against external shocks and help safeguard the country’s energy security.
Dr. Forson expressed confidence in Ghana’s preparedness, stating that the country is in a comfortable position to navigate any disruptions that may arise from developments in the global energy market.
His remarks come at a time when governments around the world are closely monitoring the impact of geopolitical tensions on crude oil prices and fuel supply chains, amid fears that prolonged conflicts could trigger higher energy costs and inflationary pressures across several economies.
Ghana, however, appears better placed to manage the situation due to its local production capacity, diversified supply sources and strengthened foreign exchange position.
CREDIT: MAVIS FANTEVI
