Three things drive fuel prices – NPA boss names the forces behind Ghana’s pump prices

The CEO of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, has highlighted the key factors that influence fuel prices in Ghana. These factors include the international Free on Board (FOB) price, taxes, and the exchange rate. Mr Tamakloe's remarks come as the downstream petroleum sector faces external pressures that impact pump prices.

The NPA recently adjusted the price floors for petrol and diesel due to changes in global petroleum market conditions. Speaking on Joy News’ PM Express Business Edition, Mr Tamakloe emphasized the challenges of managing Ghana's petroleum sector, which is highly exposed to external market developments. He noted that petroleum products are crucial to the economy, with limited alternatives for consumers when supplies are disrupted.

Mr Tamakloe also recalled the fuel shortages and long queues experienced during 2014 and 2015, which were internally generated rather than due to a lack of products. He stressed the strategic importance of petroleum products to Ghana's economy and national security, making the management of the downstream sector a top priority. The NPA aims to manage domestic factors while remaining vigilant to external developments that could affect the industry, recognizing the critical role of petroleum in the economy.