The National Petroleum Authority (NPA) CEO, Godwin Edudzi Tamakloe, has indicated that the Ghanaian government might be compelled to intervene in fuel pricing should global crude oil prices experience a significant surge, specifically if they exceed $120 per barrel. Speaking on PM Express on Joy News, Mr. Tamakloe clarified that while authorities are closely monitoring market developments, a sustained rise beyond this threshold would necessitate deeper policy discussions at the highest levels of government, potentially involving ministerial or presidential engagement.

Mr. Tamakloe emphasized that the current period serves as a crucial window for observing market reactions, which will inform future decisions. He stated, “Anything beyond maybe $120 per barrel for the world price of crude, then the conversations can be firmed up.” He acknowledged that firm assurances on price stability are difficult to provide, as any major response would require extensive consultations beyond the regulator's mandate. President John Dramani Mahama is reportedly greatly concerned about the potential impact on Ghanaians, with Mr. Tamakloe affirming that the President would not hesitate to explore measures within existing frameworks to mitigate the impact on consumers if the situation deteriorates.

Moreover, Mr. Tamakloe highlighted geopolitical tensions as the most significant threat to fuel price stability in Ghana. He cited global conflicts as a constant concern for regulators due to their direct influence on crude oil prices. He referenced past events, such as a 12-day conflict involving Israel and the US, and threats to the Strait of Hormuz, noting that while some events like Venezuela's crude production issues had limited impact, the potential for disruption remains high. These geopolitical issues are a major concern for Ghana, largely because of its substantial reliance on imported petroleum products.

Ghana's vulnerability stems from approximately 60% of its national petroleum consumption being dependent on imported products. Although local refineries like Tema Oil Refinery and Sentuo contribute about 30-40% of national consumption, processing around 5,000 to 6,000 barrels of crude, their capacity is relatively small. Consequently, any impact on global crude prices or supply routes becomes a significant issue for the country. Mr. Tamakloe further explained that fuel pricing in Ghana is primarily driven by two key factors: foreign exchange rates (forex) and Free-On-Board (FOB) pricing, with the latter being directly dependent on the price of crude oil.