The Chamber of Petroleum Consumers (COPEC) has expressed concerns that the government's recent decision to cushion diesel prices with a ¢2-per-litre intervention may not be a lasting solution to Ghana's fuel price challenges. The warning comes as the government's announcement of the intervention is seen as a welcome move, but one that falls short of addressing the long-term fuel price challenges facing the country.
Government's Diesel Relief Measure Falls Short, Says COPEC
According to Duncan Amoah, the Executive Secretary of COPEC, the government's decision deserves credit, but such measures cannot be maintained indefinitely. Speaking on JoyNews' PM Express Business Edition on Thursday, Mr Amoah said the intervention offers some relief but cannot be relied upon as a lasting solution. He emphasized that Ghana needs a permanent, sustainable mechanism to protect consumers from recurring fuel price shocks rather than relying on periodic interventions.
COPEC believes that a strategic fuel reserve programme would offer a more dependable buffer against global oil market volatility than occasional government interventions. Mr Amoah argued that the country should prioritize building a strategic fuel reserve programme to reduce the impact of sudden price movements on the local market. He stated that such a programme would be more effective in providing stability over the long term.
Diesel Price Shocks Affect Transport Fares, Business Costs
The rising cost of petroleum products has been a major concern in Ghana, with transport fares, business operating costs, and household budgets being severely affected. The government's announcement of the ¢2 diesel cushioning followed fresh increases in petroleum prices, with the intervention aimed at easing the burden on commercial transport operators, businesses, and consumers who depend heavily on diesel. While the immediate relief may be welcome, COPEC's warning highlights the need for a more sustainable solution to address the fuel price challenges facing the country.
Building a Strategic Fuel Reserve Programme
Mr Amoah believes that a strategic fuel reserve programme would offer a more dependable buffer against global oil market volatility than occasional government interventions. He emphasized that such a programme would be more effective in providing stability over the long term. The programme would aim to reduce the impact of sudden price movements on the local market, providing a more sustainable solution to Ghana's fuel price challenges.
The government's decision to cushion diesel prices with a ¢2-per-litre intervention may provide some relief to consumers in the short term, but it is essential that a more sustainable solution is found to address the long-term fuel price challenges facing the country. COPEC's warning highlights the need for the government to prioritize building a strategic fuel reserve programme to provide stability over the long term. Only then can Ghana's fuel price challenges be truly addressed.
Source: Joy Online
