The Chamber of Oil Marketing Companies (COMAC) has raised serious concerns over Ghana’s growing vulnerability to fuel supply disruptions amid escalating geopolitical tensions between Israel and Iran.

Although some Ghanaians are currently enjoying marginal fuel price reductions at the pump, COMAC has warned that the relief could be short-lived.

COMAC highlighted the potential economic and energy security implications for Ghana as global oil markets respond to unfolding events in the Middle East.

“Ghana, as a net importer of petroleum products, faces a growing risk of fuel supply uncertainty amid escalating tensions between Israel and Iran, which have sent shockwaves through the global oil market.”
Chamber of Oil Marketing Companies (COMAC)

The Brent crude benchmark has already surged by over 8%, approaching $77 per barrel. Historical data indicates that geopolitical conflicts in oil-sensitive regions such as the Strait of Hormuz can push global prices up by 10% to 30%.

While there have been no direct disruptions to supply so far, COMAC noted that market sentiment remains fragile.

“Though there are no immediate supply shortages, market uncertainty remains high.
“Should the conflict persist, disruptions in global oil flow are likely, placing additional pressure on fuel-importing nations like Ghana.”
Chamber of Oil Marketing Companies (COMAC)

Despite global concerns, ex-pump prices in Ghana are expected to drop by 1% to 4.3%, according to COMAC’s price projections. Some Oil Marketing Companies (OMCs) have already started reducing prices at the pumps, offering temporary relief for consumers.

Factors Keeping Prices Down

Between May 27 and June 12, the Ghanaian cedi appreciated by about 15% against the U.S. dollar. Since fuel imports are dollar-denominated, this appreciation eased some of the pressure on import costs.

“The government’s decision to suspend the GH¢1 increment under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) has played a crucial role in preventing immediate upward adjustments in fuel prices.”
Chamber of Oil Marketing Companies (COMAC)

Additionally, the country’s delayed fuel pricing mechanism means that many importers are still selling stock purchased under previous, lower price terms—creating a time lag in global price pass-through.

Despite the temporary relief, COMAC stressed that Ghana remains highly exposed to global energy market shocks:

Ghana does not currently have a functional fuel reserve system, leaving it vulnerable during crises.

The downstream sector suffers from systemic inefficiencies, particularly in storage and distribution.

With the Tema Oil Refinery (TOR) still inactive due to operational and financial difficulties, Ghana spends over $400 million per month on refined fuel imports.

“Our reliance on imported refined products makes us extremely vulnerable to external price shocks.”
Chamber of Oil Marketing Companies (COMAC)

Critical Reforms Needed

COMAC urged the government to adopt long-term strategies to enhance national energy security and reduce dependence on global supply chains.

“The effective operation and proper resourcing of the Bulk Oil Storage and Transportation (BOST) are crucial for enhancing Ghana’s fuel supply chain, national strategic reserves, and overall storage capacity.”
Chamber of Oil Marketing Companies (COMAC)

Additionally, COMAC noted ensuring adequate foreign exchange reserves for petroleum imports would contribute to greater stability in Ghana’s fuel supply chain.

“To support the 2025 ESSDRL amendment, phasing out subsidies on untaxed petroleum products like MGO Local could save an estimated GHS 431 million annually.
“These funds, combined with ESSDRL proceeds, would help reduce Ghana’s mounting energy sector debt.”
Chamber of Oil Marketing Companies (COMAC)

While Ghana is currently enjoying short-term fuel price relief, COMAC warned that this stability may not last as geopolitical tensions escalate.

“The Israel-Iran conflict serves as a stark reminder of Ghana’s exposure to global energy volatility.
“It is time to shift from reactive measures to a proactive, resilient energy policy that shields the nation from future shocks.”
Chamber of Oil Marketing Companies (COMAC)

The need for decisive energy sector reforms has never been greater. With global oil market instability threatening fuel supplies, Ghana must prioritize infrastructure improvements, local refining, and strategic reserves to minimize exposure.

The government and industry stakeholders must act swiftly to ensure that Ghana’s energy security remains intact, preventing future shocks that could disrupt economic stability and consumer well-being.