‘There’s a lot of attention on diesel at the moment’ – NPA explains supply pressures, impact on prices

The National Petroleum Authority (NPA) has explained the supply pressures affecting diesel prices, attributing the situation to disruptions in Russian production. Abass Tasunti, NPA's Director of Economic Regulation and Planning, highlighted that the scramble for diesel has led to the release of strategic reserves and efforts to safeguard domestic stocks.

Supply constraints and ongoing attacks on Russian refineries are the primary concerns, with Russia being a major diesel supplier to Europe. This disruption has caused a significant impact on the wider market, as shortages result in increased economics factors such as supply and demand. Western restrictions on Russian diesel have redirected supplies to other markets, benefiting countries like Ghana and others in Africa.

However, attacks on Russian refineries have caused a 30% reduction in the country's diesel supply, leading Russia to restrict exports and further tighten availability. European countries have agreed to release approximately 42 million barrels of diesel from strategic reserves over three months, with France contributing 10 million barrels and Spain contributing about four million barrels.

These releases are seen as a short-term response to the shortage, but the uncertainty surrounding additional supplies due to continued attacks on Russian refineries remains a concern. Ghana's LPG prices could fall even as international prices rise, thanks to a fixed import price for a one-month period in the country's LPG tender program.

This arrangement has cushioned consumers against a sharp increase in the next pricing window. The available LPG was bought at a lower price earlier, and while it may delay the effect of price changes, it provides temporary relief to consumers.