Global conflicts not expected to spike fuel prices — CEMSE

By Rebecca Okine

The Executive Director of the Centre for Environment Management and Sustainable Energy (CEMSE), Benjamin Nsiah, has predicted that fuel prices in Ghana are unlikely to rise significantly in the coming months, despite ongoing global conflicts and oil supply disruptions.

Speaking in a media interview, Mr. Nsiah explained that the international petroleum market is being carefully managed by key global players to prevent price hikes that could harm their economies.

“There are certainly indicators that have kept prices below what the expectation has been. One is the U.S. economy, which doesn’t want to see petroleum prices hike because it affects inflation and puts pressure on the government,” he said.

The CEMSE executive director also cited Europe’s reluctance to allow oil prices to surge.

“They believe price escalation could increase revenues for the Russian economy and indirectly fund the Ukraine conflict,” he noted

Mr. Nsiah explained that despite recent tensions and temporary supply disruptions in areas like the Strait of Hormuz, oil prices have remained relatively stable.

He contrasted this with past conflicts, such as the earlier stages of the Russia-Ukraine war, which drove prices above USD80 per barrel.

“This time, even though there’s conflict, the prices haven’t escalated as expected because major players are actively working to keep them down,” the CEMSE executive director indicated.

With a current ceasefire in place and a cautious global approach to energy markets, Mr. Nsiah believes the outlook for Ghana is positive.

“I think that prices in August and September are likely to be stable, contrary to projections by some CEOs,” he emphasized.