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.
Quick Summary
The Chamber of Petroleum Consumers (COPEC) has proposed a strategic petroleum reserve to protect Ghanaian consumers from volatile fuel prices. This
Summary - read the full story for complete context.
Image: MyJoyOnline
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from MyJoyOnline
Related Stories
More from Business & Economy
ILAPI-Ghana opposes government's plan to tap dormant bank accounts to fund budget
A controversial government proposal to tap into dormant bank accounts is sparking a heated debate about property rights and financial stability in
7h ago•3 min read
IMF-backed reforms must tackle Ghana's long-running energy crisis - Prof. Bokpin warns
Economist Prof. Godfred Bokpin warns that Ghana's long-standing energy sector weaknesses threaten fiscal stability, urging deeper reforms beyond
20h ago•4 min read
ECG inefficiencies could send Ghana back to IMF - Prof Bokpin
Could Ghana's economic stability be at risk due to long-standing issues within its state-owned enterprises?
21h ago•3 min read
GRA must tackle tax leakages and expand informal sector taxation - Asantehene
The Asantehene's call to the GRA highlights a critical area for Ghana's economic independence-how will the authority respond to this challenge?
13h ago•3 min read
