COPEC Calls for Strategic Fuel Reserve to Replace Price Relief Measures

Ghana should shift away from periodic fuel price interventions and establish a strategic petroleum reserve capable of cushioning consumers against global oil price shocks, the Chamber of Petroleum Consumers (COPEC) has said, arguing that emergency pump price reductions are fiscally expensive and unsustainable.

The recommendation follows President John Dramani Mahama’s directive to the National Petroleum Authority (NPA) to absorb GH¢2 per litre of diesel in a bid to ease the burden of surging fuel prices on transport operators, businesses and households.

While welcoming the intervention as timely relief, COPEC Executive Director Duncan Amoah said temporary subsidies do little to address the structural vulnerabilities of Ghana’s downstream petroleum market, which remains heavily exposed to fluctuations in international crude oil prices.

Instead, COPEC is advocating a strategic fuel reserve programme that would allow the government to purchase and store petroleum products during periods of lower global prices and release them when international markets tighten. Such a mechanism, the chamber argues, would provide a more effective buffer against external shocks while reducing the need for repeated tax-funded price interventions.

According to Mr Amoah, a reserve-based system would enable the state to retain a portion of petroleum-related tax revenues to finance stockpiling, strengthening energy security and creating a more predictable framework for managing fuel price volatility.

The chamber also cautioned that sustaining the current diesel price support could place additional pressure on public finances at a time when the government is pursuing fiscal consolidation and balancing competing spending priorities.

The proposal comes as Ghana’s fuel market faces renewed upward pressure from higher international petroleum prices, intensifying calls for longer-term policy solutions that protect consumers without undermining fiscal stability.

For investors and market participants, COPEC’s recommendation underscores a growing policy debate over whether Ghana should transition from reactive fuel price management to a strategic reserve model that enhances supply resilience, moderates inflationary pressures and reduces the fiscal costs of shielding consumers from volatile global energy markets.