Fuel Shortage: NPA Assures of 2-Month Fuel Reserves Amid Tensions in the Middle East
- The National Petroleum Authority has assured of sufficient fuel reserves to last beyond two months
- This assurance comes amid fighting in the Middle East that threatens oil supply globally
- There are concerns that Iran could close the Strait of Hormuz, one of the world's most important shipping routes
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The acting CEO of the National Petroleum Authority, Godwin Edudzi Tameklo, has assured Ghanaians that Ghana has sufficient fuel reserves to last beyond two months, amid unrest in the Middle East.
Tameklo said the country currently holds over 200 million litres of petrol and 150 million litres of diesel in reserve.
Source: Getty Images
He was speaking during a briefing with the Parliamentary Select Committee on Energy at Senchi.
“I can assure the good people of Ghana that we have enough stock to last us beyond two months, and with all the ongoing efforts, we are confident that there will be no supply disruptions."
Tameklo also said vessels carrying petroleum products were already within Ghanaian waters.
He added that Nigeria’s Dangote Refinery was producing substantial volumes of petrol and diesel, which would further support demand in Ghana.
About the tensions in the Middle East
Israel launched a surprise attack on Iranian nuclear and military targets on June 13 as part of plans to dismantle its nuclear programme.
In retaliation, Iran also launched hundreds of rockets and drones at Israel.
BBC reported that the two countries have continued exchanging strikes since, in an air war which has now lasted more than a week.
This has led to concerns that Iran could close the Strait of Hormuz, one of the world's most important shipping routes.
Around 20% of the world's oil passes through the Strait of Hormuz, with major oil and gas producers in the Middle East using the waterway to transport energy from the region.
The US and Iran were in nuclear talks at the time of Israel's surprise attack.
Recent fuel price drop in Ghana
Some selected stations are also selling petrol for as low as GH¢10.45 per litre.
The Chamber of Oil Marketing Companies noted that the cedi’s continuous appreciation against the US dollar is a major reason for the reduction at the pumps.
The suspension of the increase in taxes on fuel also gave more room for a reduction.
The Ghana Revenue Authority said the increment was postponed based on a directive from the Minister of Finance, Casiel Ato Forson.
Source: Getty Images
However, some fuel price increases are expected next month.
Oil prices rose following the US attack on Iranian nuclear sites, with the price of the benchmark Brent crude reaching its highest level in five months.
IMF endorses GH¢1 increase in fuel tax
YEN.com.gh reported that the International Monetary Fund backed the now-suspended GH¢1 increase per litre in taxes on fuel products
The fund said the increase was a strategic measure aligned with the country’s fiscal goals under Ghana's ongoing IMF Extended Credit Facility (ECF) programme.
The government said the tax increase is needed to support the clearing of the $3.1 billion energy sector debt.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
