Ghana's diesel supply is under pressure as disruptions to Russian production force countries to seek emergency supplies, the National Petroleum Authority (NPA) has said.
Abass Tasunti, the NPA’s Director of Economic Regulation and Planning, said the scramble for diesel had prompted moves to release strategic reserves and protect domestic stocks. Russia's role as a major diesel supplier to Europe made disruptions to its output significant for the wider market.
Supply constraints and ongoing attacks on Russian refineries are key concerns, with about 30% of Russia's diesel supply knocked out. Western restrictions on Russian diesel had redirected supplies to other markets, with Ghana and other African countries benefiting from those flows. However, Russia subsequently restricted exports to meet its own needs, further tightening availability.
European countries had agreed to release about 42 million barrels of diesel from strategic reserves over three months, with France contributing about 10 million barrels and Spain confirming about four million barrels. Mr Tasunti described the releases as a short-term response to the shortage, cautioning that continued attacks on Russian refineries left prospects for additional supplies uncertain.
Mr Tasunti also explained why Ghana's liquefied petroleum gas (LPG) prices could fall even as international prices rose, citing the country's LPG tender programme, which typically secures a cargo sufficient for one month, with the import price remaining fixed for that period.
The Bank of Ghana and other stakeholders are closely monitoring the situation, as the disruptions to diesel supply could have significant implications for Ghana's economy, including inflation and economic growth. The NPA's efforts to release strategic reserves and protect domestic stocks are aimed at mitigating the impact of the supply pressures on the Ghanaian economy.