The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has warned that Ghana could see a sharp increase in fuel prices as the global oil supply faces severe disruption due to ongoing hostilities in the Middle East.
Speaking on The Big Issue on Channel One TV on Saturday, March 7, Mr Amoah described the international fuel market as “shaky” and stressed that the disruptions are already having a heavy impact on global supply.
He attributed the shortage to the blockade at the Strait of Hormuz, a critical shipping route for global oil, which he said is denying the market at least 22 million barrels of crude daily.
“Things are looking a bit shaky out there. The supply situation is very bad as I speak. Last week, I mentioned that for every single day the war continues, the global market is denied a minimum of 22 million barrels daily,” Amoah said.
He noted that the early stability in prices was only possible because OPEC and its allies were producing in excess, contributing more than 200,000 barrels daily, which temporarily cushioned the market.
“The first few days, prices were not that bad because there was already an oversupply situation. OPEC and its allies were producing more than 200,000 barrels daily in excess,” he added.