The Institute for Energy Security (IES) has suggested a three-pronged approach to ensure stable and affordable petroleum prices in Ghana.

This involves maintaining a strong currency, establishing a viable domestic oil refinery to decrease fuel imports, and achieving a delicate balance between the downstream and upstream petroleum sectors.

Nana Amoasi VII, Executive Director of IES, presented this proposal during an interview with the Ghana News Agency on Friday, April 5.

This recommendation follows the recent surge in fuel prices in Ghana, which have surpassed GHS14 per litre, marking the highest level in approximately 14 months. The last time fuel prices reached such levels was in February 2023, when they peaked at GHS15.

“A more sustainable approach is to have a very strong Cedi, make use of our indigenous crude oil, and build a synergy between the upstream and downstream petroleum sectors.” Nana Amoasi VII said.

He elaborated that the nation had experienced a 14-month period of elevated fuel prices and indicated that a significant decrease before December 2024 was improbable. Instead, he suggested that what was foreseeable would be a degree of stability.

“Between February 2023 and now, we still have been dependent on oil export; our refinery capacity continues to be low since the coming of Sentuo, which is also having erratic production due to power outages, exposing us to international market risks,” he said.He also said: “Our cedi stabilised for a while, however, over the last month, there’s been a consistent decline in the value of the cedi against the importing currency – the Dollar, leading to a forex exposure, which is also working against us.”

The Executive Director of IES observed that the Price Stabilisation and Recovery Levy on petroleum products had proven ineffective in stabilising fuel prices. Therefore, he emphasized the necessity for substantive efforts to address the sector's challenges.

He asserted that addressing these issues would contribute to stabilizing the prices of petroleum products in the country, especially petrol and diesel, which currently average almost GHS15 per unit.

“Let’s work at bringing back our Tema Oil Refinery (TOR) and ensure that we’re refining some of our crude domestically, and that could give us some savings from the forex,” he said.

Nana Amoasi VII remarked that fuel importation incurred additional expenses. However, with a well-integrated connection between the upstream and downstream petroleum sectors, taxes would be minimal, leading to reduced production costs.

“If the Sentuo Oil Refinery is working efficiently, we’ll get 45,000 barrels, and if we bring back TOR, we will get another 45,000 barrels. With this, we’ll be able to meet more than 90 per cent of our domestic demand of petroleum,” he said.