The Africa Sustainable Energy Centre (ASEC) is calling on the government to take urgent steps to cushion citizens against the expected surge in fuel prices, as tensions escalate in the Middle East between Israel and Iran.

ASEC warned that the conflict could significantly impact global oil markets in the coming months, putting additional pressure on Ghana’s economy and worsening the cost of living for ordinary Ghanaians.

In a statement issued on Friday, June 27, the centre emphasised the need for proactive and strategic interventions to minimise the potential fallout.

ASEC particularly stressed the importance of properly implementing the Gold for Oil policy, which was introduced to stabilise petroleum supply while easing pressure on Ghana’s foreign exchange reserves.

“The Gold for Oil policy must be executed with enhanced transparency and accountability, ensuring that its price-stabilising potential is maximised,” ASEC stated.

It believes that if implemented effectively, the policy could play a critical role in shielding consumers from the worst of global price fluctuations.

The Centre also dismissed suggestions that small fuel price increases would be insignificant.

“Even minor hikes can compound the economic strain on citizens, especially in a context where many are already grappling with high living costs,” the statement noted.

“Every effort must be made to avoid further burdening Ghanaians.”

Another key recommendation by ASEC is the revival and expansion of the Tema Oil Refinery (TOR).

The Centre argued that Ghana’s continued reliance on refined imports, despite being an oil-producing country, exposes it to external shocks and limits the country’s ability to manage domestic prices.

“The continued dormancy of TOR has deprived Ghana of the full benefit of its crude oil production,” ASEC said, urging government to provide the necessary financial guarantees to make TOR fully operational. It further proposed that TOR be prioritised as the first buyer of Ghana’s crude before any exports are considered.

According to the Centre, these interventions—if urgently implemented—could reduce inflation, enhance energy security, and stabilise the broader economy.

“This is not the time for half measures,” the statement concluded. “The government must act decisively to protect livelihoods and ensure energy stability in these uncertain times.”