Ghana faces energy price volatility from global market shocks

Ghana is facing increased energy vulnerability due to volatility in international oil and natural gas markets. Energy expert Samson Addea reports that rising fuel prices at local pumps are a direct reflection of global market shifts, driven primarily by geopolitical tensions in the Russia-Ukraine conflict and disruptions near the Strait of Hormuz.

Because Ghana relies heavily on imported refined petroleum, domestic production cannot fully insulate the country from these shocks. Addea noted that even if all locally produced crude were refined domestically, it would only satisfy approximately 50 to 70 per cent of national demand. Further price increases are anticipated if global trends persist.

Simultaneously, Ghana’s gas-to-power strategy is being tested by surging international natural gas prices. While the country seeks to use gas as a cleaner and more cost-effective alternative to liquid fuels for electricity generation, the current market turmoil highlights the need for increased investment in domestic gas processing, transportation, and infrastructure to ensure energy security.