Acting Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, has stated that Ghana has sufficient crude oil stock to last at least two months in the event of a shutdown of the Strait of Hormuz by Iran.
Following the U.S. bomb attack against Iran’s nuclear sites over the weekend, the country has threatened to shut down the Strait of Hormuz, which experts say would lead to grave consequences on the supply of crude oil globally.
The Strait of Hormuz, situated between the Persian Gulf and the Gulf of Oman, is particularly significant because it provides the only sea passage from the Persian Gulf to the open ocean, allowing for the supply of huge volumes of oil produced in that region to various parts of the world.
The Strait of Hormuz, a critical maritime chokepoint, is geographically bordered by Iran on one side and Oman on the other.
Nearly 20 million barrels of oil, about one-fifth of daily global production, flow through the strait every day, according to the US Energy Information Administration (EIA).
Mr. Tamakloe said, “What we have done obviously at our end is that thankfully, we have enough stock currently in the country that if ‘we don’t get any coming in at least for two months’ we can have enough fuel products to keep this country going.”
The price of oil initially jumped by more than 5% late on Sunday to a five-month high of $81.40 (£60.58), but later fell back slightly. On Monday morning, Brent crude rose to 1.2%, at $77.94 a barrel.
Concerns have been raised by industry stakeholders about the impact of the ongoing Middle East conflict on fuel prices in Ghana. The conflict has also led to the indefinite suspension of the GHC1 fuel levy which was to be implemented by the government to shore up revenue in the energy sector.
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