The Member of Parliament for Tano South, Charles Asiedu, has warned that the escalating conflict between Iran, Israel, and the US could have negative implications for Ghana’s economy.
In an interview with Barima Kofi Dawson-Akokoa on Nhyria FM’s Kro Yi Mu Nsem, he explained that Ghana’s heavy reliance on imported oil makes the country vulnerable to global market fluctuations.
He noted that with the US being the world’s largest oil producer and Iran ranking ninth, tensions between the nations could disrupt oil supplies and push prices higher.
“Ghana’s oil imports come from countries that source oil from Iran and the US, so even though Ghana doesn’t purchase directly from these warring nations, it is still exposed to price shocks and supply disruptions caused by the conflict,” he said.
Mr. Asiedu further highlighted that the ongoing war has affected seven of the world’s top ten oil-producing countries, including Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE, which are experiencing production cuts and operational disruptions.
He disclosed that vessels delivering oil to Ghana have increased their charges by $100,000 due to the shutdown of the Strait of Hormuz in Iran, a key oil shipping route, and the heightened risk of attacks on vessels transporting oil from the Middle East.
“This hike in shipping costs will likely push up Ghana’s oil import bill, potentially leading to higher fuel prices and increased economic pressure,” he explained.
The lawmaker emphasized that securing oil supplies remains the government’s main focus, stressing that while prices are a concern, fuel availability is vital for Ghana’s economy and daily life.
According to Mr. Asiedu, the government is considering sourcing oil from Dangote Refinery, Sentuo, and the Tema Oil Refinery to ensure supply.
He added that despite these measures, a prolonged conflict could still drive up oil prices, as predicted by oil marketing companies (OMCs).
Charles Asiedu concluded that global moves toward solar energy and electric vehicles have reduced oil demand, slightly easing supply pressures.
