Deputy Ranking Member of Parliament’s Energy Committee and MP for Afigya Kwabre North, Collins Adomako-Mensah, warns that Ghana could encounter significant economic difficulties if the tensions between Iran and Israel continue to rise.
In a discussion about the potential effects of the ongoing conflict between these two Middle Eastern nations on Channel One Newsroom on Sunday, June 15, Adomako-Mensah pointed out the probable repercussions on global oil prices and, consequently, on Ghana’s economy, which heavily relies on fuel.
“We don’t exist in isolation. These are two major players,” he remarked. “Just yesterday, there was considerable disruption to international travel due to this situation. Both countries are key oil producers, and this will undoubtedly affect our oil prices.”
His remarks come at a time when there are increasing worries about the global economic repercussions of rising tensions in the Middle East, which have already caused fluctuations in international oil markets. Recently, Brent crude prices have surged, raising concerns about higher costs for countries like Ghana that import petroleum.
Adomako-Mensah expressed optimism that diplomatic initiatives would soon bring about a de-escalation, cautioning that a prolonged conflict could lead to serious economic hardships for the people of Ghana.
“I sincerely hope that peace is restored as soon as possible. If not, we need to prepare ourselves for very challenging times ahead,” he stated.
The MP’s comments highlight the susceptibility of Ghana’s economy to external shocks, particularly in the energy sector. His statements also serve as a warning to policymakers to proactively prepare for potential supply chain disruptions and the rising costs associated with fuel imports.
The government has delayed the implementation of the contentious Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), partly due to global uncertainties, including the tensions between Iran and Israel. While some critics have dismissed this rationale as insufficient, Adomako-Mensah’s remarks indicate that there are valid concerns regarding how such situations could impact the economy.
Source: HotFmOnline.com
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