Russia-Ukraine Crisis: Prices of petroleum products likely to go up

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File photo taken on March 12, 2019 shows operating oil pumps in Luling of Texas, the United States. U.S. oil prices turned negative on April 20, 2020. West Texas Intermediate crude for May delivery shed more than 300 percent to settle at -37.63 U.S. dollars per barrel on the New York Mercantile Exchange. (Xinhua/Wang Ying)
(Xinhua/Wang Ying)

The Russia-Ukraine crisis is likely to cause hikes in the price of petroleum products, Mr Duncan Amoah, Executive Director of the Chamber of Petroleum Consumers Ghana has said.

 

“Within a single day of bombing, global prices have inched up by about USD6 a barrel. If this invasion is sustained to the weekend, we will be crossing to USD 110 or USD120.”

 

The price of Brent crude oil, an international benchmark, touched a seven-year high of more than USD99 a barrel after President Vladimir Putin ordered troops into Ukraine’s east.

 

Mr  Amoah, who was commenting on the happenings between the two countries, said Russia was the second-largest oil exporter after Saudi Arabia and the world’s top producer of natural gas hence any action would have impact on price of oil.

 

He said measures forcing the country to supply less crude or natural gas would have implications on oil prices and the global economy.

 

Mr  Amoah urged the government to remove some taxes on petroleum products to cushion consumers in the midst of the crisis.

 

He said although the issue was pushing up prices of crude, Ghana was in a way benefiting positively as an oil exporter.

 

Dr Yussif Sulemana, an Energy Strategist, urged the government to revamp and privatised the Tema Oil Refinery to be able to process 50 per cent of the fuel the country needed.

 

He also called for the need for the government to retool the Bulk Oil Storage and Transportation Company Limited and expand its storage capacity to ensure enough fuel reserve.

 

Russia started a large-scale military attack on Ukraine, its southern neighbour this week.

 

In a televised speech, Russian President, Vladimir Putin, announced a “military operation” in Ukraine’s eastern Donbas region – an area home to many Russian-speaking Ukrainians.

 

Parts of the region have been occupied and run by Russian-backed rebels since 2014.

 

Mr Putin said Russia was intervening as an act of self-defence, adding that Russia did not want to occupy Ukraine but would demilitarise and “de-Nazify” the country.

 

Tension between Ukraine and Russia is long standing, with the current issue triggered by the 2014 overthrow of the pro Moscow Ukrainian government.

Russia saw the move as a sign that Ukraine could more closely align with the West in future, with Russian troops taking control of Crimea, a peninsula in the south of Ukraine.

Ukraine and the world community, however, still consider Crimea to be a Ukrainian territory under law.

 

The conflict has been ongoing ever since, and the UN estimates that at least 14,200 people have been killed in eastern Ukraine, including over 3,000 civilians.

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