COPEC calls for strategic fuel reserve to cushion Ghana against price shocks

The Chamber of Petroleum Consumers (COPEC) proposed that the government consider establishing a strategic petroleum reserve to shield consumers from sudden increases in fuel prices and possible disruptions to supplies. COPEC argued that such a mechanism would provide Ghana with a buffer against fluctuations on the international market and reduce the impact of sudden fuel price increases on consumers. COPEC also proposed that part of the petroleum products processed by local refineries could be channeled into the reserve to gradually build up the country's stock. The Executive Secretary of COPEC, Duncan Amoah, stated on Channel One TV on Saturday, August 8, that "If I decide to even release that stock at $600 or $700, as a government, I'll be able to recoup the investment I put in, and I'll be able to sustain fuel prices."

The proposal comes amid recent increases in petroleum prices, with diesel rising from about GH¢14 to GH¢16 per litre to nearly GH¢20 per litre within a relatively short period. COPEC suggested that between 5 and 10 per cent of products processed by local refineries could be set aside to build the strategic stock. COPEC said the recent price movements highlight the need for Ghana to develop a long-term mechanism to manage international market volatility rather than relying mainly on interventions after prices have already risen.