While the central bank has assured Ghanaians and investors that the country’s external reserves exceed four months cover, thus making the economy resilient, UK-based firm Fitch Solutions is cautioning that global geopolitical flashpoints and US trade policies could quickly erode Ghana’s international reserves.
Thus, Fitch Solutions believes the central bank, under such a situation would struggle to maintain the cedi at current levels.
Indeed, rising tensions in the Middle East could lead to an increase in fuel prices during the first pricing window of July.
The Chamber of Petroleum Consumers (COPEC) believes the ongoing conflict is likely to have severe implications for global oil supply and, by extension, for fuel-importing countries like Ghana.
In view of this, COPEC is urging consumers to brace for possible increases and is calling on policymakers to monitor global developments closely and adopt mitigation strategies to cushion potential effects on Ghanaians.
Although the second pricing window of June provided relief for consumers, Executive Secretary-COPEC Duncan Amoah does not expect that trend will continue into July’s first pricing window.
It is in this regard that government’s decision to suspend the proposed GH¢1 increment under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) is a most welcome development in the interim.
The COPEC Executive Secretary also called on government to get Tema Oil refinery fully back on its feet. Tema Oil Refinery (TOR) management have announced plans to resume full operations by October 2025.
The refinery’s return to optimal function is expected to reduce the country’s reliance on imported refined petroleum products.
Acting Managing Director-TOR, Edmund Kombat, disclosed this when he appeared before the Energy Committee of parliament recently.
The refinery aims at processing up to 60% of Ghana’s crude oil consumption – helping the nation save an estimated US$400million spent monthly on refined oil imports.
