We have at least 6 weeks of fuel cover – NPA boss calms supply fears

The National Petroleum Authority (NPA) of Ghana has reassured the public that the country currently boasts at least six weeks' worth of fuel reserves, quelling fears of an imminent supply crunch due to tightening global petroleum supplies. NPA Chief Executive Officer, Godwin Edudzi Tamakloe, stated that the existing fuel stocks, along with shipments still at sea, provide a robust cushion for the domestic market.

On Joy News' PM Express Business Edition, Tamakloe emphasized that "we have not less than 6 weeks of cover," responding to concerns about Ghana's fuel supply outlook following reports of restricted global supplies and reduced fuel exports to neighboring countries in the sub-region. He highlighted the significance of the numerous vessels currently sailing the oceans with petroleum products, assuring that, for now, he has confidence in the supply situation.

Tamakloe's primary concern is not the availability of fuel but potential price fluctuations resulting from international market conditions. He dismissed the possibility of supply issues within the next month, noting that the evolving international market dynamics are prompting exporting nations to modify their strategies. He also pointed to the growing influence of Nigeria's Dangote refinery to further alleviate fears about the country's fuel supply.

These remarks come as Ghana's fuel market faces additional strain from global supply disruptions stemming from conflicts and reduced availability of petroleum products. The International Energy Agency has warned of a substantial decline in global oil supply by 2026, and refined fuel inventories have also faced pressure. Concurrently, Ghana has increased its fuel price floors, with the NPA's floor price rising to GH¢16 per litre for petrol and GH¢16.77 for diesel, effective September 16, while LPG stands at GH¢10.97 per kilogramme.

BOSTenergies, a fuel exporter, clarified that the decrease in fuel exports to Burkina Faso and Mali is not indicative of an impending shortage in Ghana, attributing it to refurbishment works at its Bolgatanga depot. Tamakloe also defended Ghana's private-sector-driven downstream petroleum architecture, asserting that it was designed to foster private-sector participation and citing safeguards to prevent the private sector from exerting undue pressure on the government.