ASEC Calls for Urgent Measures to Protect Ghanaians from Fuel Price Shocks Amid Israel-Iran Tensions
The Africa Sustainable Energy Centre (ASEC) has urged the Government of Ghana to adopt urgent and strategic measures to protect citizens from a potential spike in fuel prices due to escalating tensions between Israel and Iran.
In a statement issued on Friday, June 27, ASEC warned that the ongoing conflict in the Middle East could significantly disrupt global oil markets, thereby putting additional pressure on Ghana’s economy and worsening the already high cost of living for ordinary citizens.
The Centre called for proactive interventions, highlighting the critical importance of implementing the Gold for Oil policy more effectively. The initiative was introduced to stabilise fuel supply while alleviating pressure on Ghana’s foreign exchange reserves.
“The Gold for Oil policy must be executed with enhanced transparency and accountability, ensuring that its price-stabilising potential is fully realised,” the statement read.
According to ASEC, a well-managed Gold for Oil programme could play a pivotal role in shielding Ghanaian consumers from the volatility of the global oil market.
The Centre also rejected claims that slight fuel price increases would have negligible effects on the economy.
“Even minor hikes can exacerbate the economic burden on citizens, particularly at a time when many are struggling with high living costs,” ASEC noted.
“Every effort must be made to avoid further burdening Ghanaians.”
In addition, ASEC renewed calls for the revitalisation and expansion of the Tema Oil Refinery (TOR), arguing that Ghana’s overreliance on imported refined petroleum products leaves it vulnerable to external shocks—despite being an oil-producing nation.
“The continued dormancy of TOR has deprived Ghana of the full benefits of its crude oil production,” the Centre said.
ASEC urged the government to provide financial guarantees to make TOR fully operational and proposed that the refinery be prioritised as the first buyer of Ghana’s crude oil before any exports are made.
The Centre emphasised that these measures—if implemented swiftly—could help curb inflation, strengthen energy security, and stabilise the national economy.
“This is not the time for half measures. The government must act decisively to protect livelihoods and ensure energy stability in these uncertain times,” ASEC concluded.
Credit: Prince Adu-Owusu
