Responding to the current energy crisis

?it cannot be business as usual!

Nature does not seem to be just always. Many world events tend to be a zero sum game, with somebody?s gain being another person?s pain. The current energy crisis is immensely benefiting oil producers while bringing tremendous hardship to others who are not luck to possess this almost indispensable natural resource. And it looks like we are in for a long haul since the key players in the crisis appear to be poised to entrench their positions. The Iranian nuclear crisis, the unrest in key oil producing parts of Nigeria, the socialist tide sweeping South America with the nationalization of oil and gas resources, and other geopolitical factors have combined to fuel the crisis. The current trend in oil prices could last for a while yet?some experts have said it could go up to $100/per barrel?until it gets to a point when consumers may not be able to take it any more and would be forced to make the necessary adjustments to reduce their demand significantly.

As a country, Ghana, which unfortunately has not been endowed yet with oil, cannot sit idly by while these events continue to unfold. We should take our destiny into our own hands and act now. Response to the crisis cannot be business as usual, but requires a determined and concerted effort. Every country that is a net consumer of oil is strategizing now to limit the effect of the crisis on their economies. And Ghana cannot afford to sit on the sidelines and wait, but must act now if it is to avoid being blown away by the current whirlwind.

Actions by both the government and individuals are necessary to mitigate the impact of the crisis on the economy and on peoples? pockets. While individual attitudes may have to change, creating appropriate systems would facilitate such a change.

So starting at the government level, steps should be taken to increase energy conservation as well as to reduce costs. And as a first priority, the traffic congestion that causes such excessive burning and wastage of fuel should be addressed promptly. This should include relocating trotro stations away from busy roads/streets and from the city centers. Also, some major roads need to be rehabilitated and, in particular, widened. The Accra High Street, for instance, is too important to be left in the current state. Converting it into a 4-lane dual carriageway would not only bring physical dignity to Accra but also ease traffic congestion tremendously. The flood of hawkers in the central city areas is a major source of traffic congestion. We all saw what difference it made when they were previously removed. But as it often happens in Ghana, this usefully successful exercise became a nine day wonder, being swept away apparently in satisfaction of political expediency. The exercise should be quickly reactivated to relocate the hawkers away from the central business areas so as to free vehicular and human traffic.

As a further means of reducing fuel use, laws regarding the use of roadworthy and especially ?non-fuming? vehicles should be strictly enforced. Not only do these vehicles burn excessive fuel but they also pollute the atmosphere and constitute health hazards. This would require stepped up checks by the police, who may have to set good example themselves by putting their own vehicles in proper conditions. Also, as probably a temporary measure, government could consider designating alternate driving days for even- and odd-numbered vehicles to ease traffic congestion and excessive use of fuel. This has been successfully implemented in some other countries.

We should also begin to encourage people to purchase smaller, low-petrol-consuming cars, while discouraging the use of large, oil-guzzling models. This should entail introduction of more steeply differentiated duties on imported cars based on their horsepower. The shift away from large to more compact cars would save the nation and individuals considerable cost. This shift is occurring even here in the US, known for its flashy, high oil-consumption Sports Utility Vehicles (SUVs)?Ghana?s equivalent of 4WDs. This is also the time to strictly enforce, and even limit, the use of official vehicles in order to save costs. When the leadership lead by example, the public tend to respond positively to official policies and regulations. The number of intra- and inter-city buses which take more people at a time and therefore save oil use should be increased. This would attract some individuals who would otherwise use low-occupancy vehicles at considerable fuel and financial cost.

This is also the time to revisit the oil pricing formula and reduce some of the taxes and/or levies. Many countries are doing this now. There is a strong drive in this direction even here in the US, where oil taxes have been traditionally low. Since the high oil prices bring extra tax-revenue to the government, giving some back to consumers in the form of lower taxes/levies would lessen their pain without any serious detrimental effect on the budget. By so doing, the cost-recovery pricing of petroleum products, which in and of itself promotes consumption efficiency, could then be allowed to operate uninhibited by social considerations.

Individuals also have a duty to the nation and to themselves in helping to make savings on fuel use. In the first place, as is happening all over the world, people would be wiser to purchase small, low-oil-consuming cars and avoid big, high-oil-consuming models. Car pooling with relations and friends should also become an increasing trend to save on fuel use. Resorting more to the use of public transport would also be helpful. People must also reduce their rate of commuting intra- and inter-city when practicable. Whenever possible, people must also avoid long stays in traffic by avoiding busy roads/streets and limiting driving time.

It needs to be reiterated that urgent action is needed in the foregoing and other areas to save the nation from the risks associated with the mounting cost of fuel use. Lack of action could cripple the economy and bring untold hardship to the people.