Accra: Ghana must transition from what energy expert Ing. Justice Ohene-Akoto refers to as a 'reactionary' method of fuel pricing to a sustainable, long-term framework to mitigate the country's vulnerability to global oil price fluctuations. Ing. Ohene-Akoto, who serves as the Executive Director of the Africa Sustainable Energy Centre, emphasized that while the government's GHS2 reduction in diesel prices is beneficial for consumers, it fails to address the deeper issues within Ghana's energy system.
According to Ghana Web, Ing. Ohene-Akoto expressed these views during an appearance on the Asaase Breakfast Show, highlighting the need for a more sustainable approach to petroleum pricing. He advocated for the removal of unnecessary levies and a reassessment of the pricing floor, suggesting the permanent elimination of the GHS1 fuel levy, which has faced criticism from industry stakeholders.
Ing. Ohene-Akoto also urged the National Petroleum Authority (NPA) to introduce greater flexibility in the petroleum pricing floor. He proposed that oil marketing companies should have the option to sell below the current floor price, provided they adhere to the required quality standards. He argued that such flexibility could enable market forces to lower prices without necessitating government intervention when international crude oil prices rise.
The energy expert stressed that relaxing the floor price should be paired with enhanced standardization and quality monitoring to ensure consumers receive high-quality products. He emphasized that Ghana's status as an oil-producing nation should empower it to achieve greater energy sovereignty instead of remaining susceptible to international oil price shocks. Ing. Ohene-Akoto called for comprehensive reforms across the petroleum value chain, from crude oil production to refining and consumption.
He welcomed the expansion of Ghana's refinery capacity but noted the importance of ensuring that domestic oil resources contribute to increased energy security. Ing. Ohene-Akoto also advocated for diversifying Ghana's transport and energy mix to lessen the country's dependence on petroleum products, noting that approximately 90% of Ghana's transportation system relies on fossil fuels.
To address this, he urged the government to introduce policies and incentives to promote the adoption of electric vehicles, biofuels, and renewable energy. Developing alternative energy sources, he argued, would provide a buffer against international oil market fluctuations. Furthermore, he highlighted the need for greater investment in bulk oil storage capacity to improve Ghana's resilience to periods of international market volatility.
Ing. Ohene-Akoto identified four critical areas requiring immediate and medium-term attention: removing the GHS1 fuel levy, revising the NPA's pricing floor, increasing petroleum storage capacity, and expanding domestic refining. These measures, he stated, would offer a more sustainable response to global oil price volatility than temporary price interventions.
Additionally, he supported extending price relief beyond diesel to include petrol and LPG, asserting that the benefits of any intervention should encompass all petroleum products. While he described the GHS2 diesel reduction as a welcome relief for consumers, he encouraged the government to refine its approach and establish a long-term strategy for energy security.