Ghana may need to take major policy decisions if global crude oil prices climb to $120 per barrel, the head of the National Petroleum Authority has warned, signalling the government’s readiness to respond to sustained energy market pressures. Speaking on Joy News, Godwin Edudzi Tamakloe said such a price level would likely trigger high-level discussions involving ministers or the presidency.
Tamakloe noted that authorities are currently monitoring global market trends before making any concrete moves, emphasising that key decisions require broad consultation across government. He added that while there is still time to assess how markets respond, a prolonged surge in prices would prompt more decisive action.
He also acknowledged that rising crude prices would directly impact local fuel costs, raising concerns for consumers already grappling with elevated inflation. While no firm assurances were given on price stability, he stressed that the situation is already drawing attention at the highest levels of government.
Global crude prices have climbed sharply in recent weeks, driven by geopolitical tensions in the Middle East and disruptions along the Strait of Hormuz shipping route. Brent crude has traded above $85 per barrel, with analysts warning of further increases if the conflict escalates. For Ghana, a net importer of refined petroleum products, each dollar increase in crude prices translates directly into higher domestic fuel costs.
The government faces a difficult balancing act. Allowing market prices to rise fully protects the fiscal position but compounds economic hardship for households and businesses. Subsidising fuel costs would ease immediate pressure on consumers but strain public finances and complicate the country’s International Monetary Fund programme.
The reference to $120 per barrel reflects worst-case scenario planning. At that level, petrol prices could approach GH¢20 per litre, with devastating consequences for transportation, food prices, and overall inflation. The government’s contingency planning suggests recognition of the severity of such an outcome and the need for coordinated response.
