Israel-Iran Conflict May Spark July Fuel Price Surge in Ghana – COPEC
Rising hostilities between Iran and Israel, combined with threats to the Strait of Hormuz, could disrupt global oil flow and drive up local fuel prices
- Rising tensions between Iran and Israel, including U.S. airstrikes, threaten global oil supply routes.
- COPEC warns fuel prices in Ghana could rise in early July due to expected crude oil price surges
- COPEC urges government to monitor the situation
The Chamber of Petroleum Consumers (COPEC) has cautioned that Ghanaians could see a spike in fuel prices during the first pricing window of July, citing escalating tensions between Iran and Israel as a major factor.
The ongoing Middle East conflict, which has intensified following U.S. airstrikes on three Iranian nuclear facilities, is threatening global oil supplies. COPEC warns that these developments could push fuel prices up significantly, particularly for import-dependent countries like Ghana.
A major concern is the potential closure of the Strait of Hormuz—a strategic waterway through which roughly 20% of the world’s oil and gas flows. Such a move could send shockwaves through global energy markets, leading to severe supply disruptions and volatile price swings.
Speaking in an interview, COPEC Executive Secretary Duncan Amoah predicted that local Bulk Distribution Companies (BDCs) might soon raise prices due to the heightened risk of fuel imports. As a result, Oil Marketing Companies (OMCs) may follow suit, passing the cost on to consumers.
“Given the current geopolitical risks, I wouldn’t be surprised if BDCs adjust their prices upward this week. Once that happens, it’s inevitable that OMCs will do the same,” Amoah said.
Despite recent relief in the second pricing window of June, Amoah does not expect the trend to hold into July. He noted that global crude price increases typically filter into finished product prices within 5–7 days.
“Consumers should prepare for possible upward adjustments,” he added. “Ghana will not be exempt from the global effects of Middle Eastern instability.”
Amoah also lauded the government for halting a proposed GH¢1 increase under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) and reiterated calls for the expedited rehabilitation of the Tema Oil Refinery (TOR), which aims to resume full operations by October 2025.
