Ghana is affected by the global fuel shortage as refineries become prime targets in the war between the U.S. and Iran. The Yemeni Houthis have claimed responsibility for their latest attack on Saudi infrastructure, the Ras Tanura refinery, which has a capacity of 550,000 barrels daily.
This attack is part of a larger trend of refineries being targeted, with 80% of Russia's refining capacity damaged.
The global fuel shortage has been worsened by the damage to refineries in Gulf states, with Iran warning its Gulf neighbors that they are targets as they host U.S. military bases. The Ukrainian army has launched over 100 drone attacks on Russian refineries, resulting in a significant decrease in Russia's refining capacity, from 6.1 million barrels daily to 1.6 million barrels daily.
Russia has banned exports of diesel fuel and curbed gasoline exports, aggravating the global fuel supply situation.
The International Energy Agency's secretary-general, Fatih Birol, has warned that crude oil and natural gas prices will remain elevated next year, with the prices for products being even higher. The U.S. president has struck a deal with Russia's president for the delivery of 300,000 tons of diesel fuel to the U.S. and international markets next month, but analysts question the significance of this volume.
Ghana's international reserves are at risk, according to Fitch Solutions, and the country is strategically positioned to attract investors, according to the GIPC CEO.
The Ghanaian government has spent $35m on COVID-19 testing, and the market anticipates the MPC to hold the policy rate at 29.5%. The World Bank has given Ghana $200m to modernise and diversify the 'Tree Crops' sector, and Ghana is expected to receive $4.6bn in remittances in 2023.
The fuel supply situation will remain tense for many countries around the world, especially those that allowed their refineries to be shut down in anticipation of the Age of Electricity.
Expert warnings suggest that the global fuel shortage will continue, with refineries being targeted and the danger of more attacks remaining. The Ghanaian economy will be affected by the global fuel shortage, with potential increases in fuel prices and decreases in economic growth. The Bank of Ghana, led by Ernest Addison, will need to monitor the situation closely and adjust monetary policy accordingly.