The Sustainable Energy & Mines Projects Advocacy (SEMPA) has warned that Ghana faces sustained increases in fuel prices through the end of 2026 as escalating geopolitical tensions in the Middle East continue to disrupt global oil markets and tighten energy supplies.
In a market brief released for July 2026, SEMPA said the prolonged confrontation between Iran and the United States has significantly affected global crude oil markets after the Strait of Hormuz—one of the world’s busiest oil shipping routes—remained largely closed to tanker traffic.
The organisation said the disruption, coupled with declining United States strategic petroleum inventories, has driven global oil prices to levels not seen since the 1970s oil embargo.
According to the report, international investors have shifted their positions in anticipation of prolonged supply disruptions rather than a rapid recovery in global oil exports.
Hedge funds increased their exposure to Brent crude while investors also expanded bullish positions in refined petroleum products, including gasoline and diesel, amid growing concerns over fuel shortages.
SEMPA noted that the refined fuels market has also tightened following intensified Ukrainian attacks on Russian oil refineries, prompting Russia to suspend diesel exports and further reducing global supplies of middle distillates.
The organisation said these developments are expected to have significant implications for Ghana, which relies heavily on imported petroleum products and is a price taker in international fuel markets.
“Movements in global oil prices pass directly and quickly to Ghana’s ex-pump prices,” the report stated, warning that households, transport operators and small businesses should prepare for a prolonged period of elevated fuel costs.
SEMPA said higher fuel prices are likely to increase transport fares, raise the cost of goods and services, fuel inflation and place additional pressure on government finances.
To cushion the impact, the organisation urged the Government of Ghana to implement a series of immediate and long-term policy interventions.
Among its recommendations are the introduction of temporary and targeted fuel price relief measures, agreements with transport unions to limit fare increases, and direct financial support for vulnerable households and small and medium-sized enterprises through existing social protection programmes.
SEMPA also called for accelerated investment in renewable energy, stronger fiscal and monetary policies to support the cedi, and the fast-tracking of the rehabilitation and modernisation of the Tema Oil Refinery to reduce Ghana’s dependence on imported refined petroleum products.
In addition, the organisation recommended expanding Ghana’s strategic fuel storage capacity and strengthening market monitoring by the National Petroleum Authority to improve price transparency and enable quicker policy responses to global market developments.
SEMPA’s Executive Director for Energy Transition, Luqman Abubakari, said Ghana’s response should combine immediate measures to cushion consumers with longer-term investments that improve the country’s energy security and resilience against future global oil market shocks.
The organisation stressed that early and coordinated action by government, working closely with the Ministry of Energy and relevant agencies, would be essential to managing the economic impact of continued global oil market volatility.
Source: www.kumasimail.com
