A Natural Resource Governance Expert, Dr. Steve Manteaw, has proposed a set of short- to medium-term measures to help Ghana cushion the impact of rising global oil prices amid escalating tensions involving Iran, the United States and Israel.
In a policy note, Dr. Manteaw recommended a reduction in the GHC4 per gallon levy on petroleum products to ease the burden on consumers and businesses facing increasing fuel costs.
To offset the potential revenue shortfall from the levy reduction, he suggested that government redirect excess funds accruing to the Petroleum Stabilisation Fund due to higher crude oil prices. According to him, these additional revenues could be used to partially plug the gap created by the cut in the levy.
Dr. Manteaw further cautioned that any intervention must be carefully calibrated to avoid creating price distortions that could encourage fuel smuggling to neighbouring countries. He warned that poorly designed subsidies could inadvertently benefit non-Ghanaian consumers.
He also outlined contingency measures in the event of supply disruptions, urging authorities to activate the Domestic Supply Obligation under Ghana’s Petroleum (Exploration and Production) Act, 2016 (Act 919).
This provision, he noted, can be used to prioritise supply to the local market, subject to available refining capacity.
The recommendations come as concerns grow over the potential impact of global geopolitical tensions on fuel prices and energy security in Ghana.
