2014-15 fuel queues were ‘artificial’ – NPA boss reveals lesson driving government’s strategy

Godwin Edudzi Tamakloe, the CEO of the National Petroleum Authority (NPA), has revealed that the artificial nature of the fuel queues experienced in Ghana during the 2014-15 fuel crisis has influenced the government's current strategy to safeguard the downstream petroleum sector. This revelation emerges as international prices of crude and refined petroleum products continue to rise, putting additional pressure on Ghana's fuel market.

During his appearance on Joy News’ PM Express Business Edition, Tamakloe recounted discussions with President John Mahama regarding the fuel shortages that plagued the country around 2014 and 2015. He noted that the fuel queues were not a result of a shortage of petroleum products but rather an artificial scarcity at the individual service stations, which led to the formation of queues.

Tamakloe emphasized the strategic significance of petroleum products to Ghana's economy and national security, stating that the petroleum sector is "very strategic" and "the nervous system of the entire economy." He underscored the importance of managing internal risks while preparing for external shocks, given the critical role of fuel in everyday life.

The NPA boss identified three primary factors that impact fuel availability and pricing in Ghana: the Freight-on-Board (FOB) price, the tax component, and most importantly, the exchange rate, as the product is imported. These factors are crucial as Ghana navigates the volatility of international petroleum markets, with recent price increases linked to higher global crude and refined product prices and the fluctuating value of the cedi.