Siena:The Chamber of Petroleum Consumers (COPEC) has called on the government to ensure that local refineries pay for crude oil in cedis rather than dollars. This move, according to COPEC, would help alleviate pressure on Ghana's foreign exchange market and stabilize the local currency.
According to Ghana Web, Duncan Amoah, CEO of COPEC, emphasized that paying in cedis would decrease the need for refineries to compete for scarce dollars, particularly since refined products are sold domestically in cedis. Amoah highlighted that the crude supply terms should support local refining efforts while safeguarding the interests of oil producers and the state.
Amoah praised the commercial arrangement with Tullow Oil, which supplies crude to local refineries. He noted that structuring the deal to benefit all parties, including the Jubilee Partners, Tullow, and the Ghanaian state, is essential.
He stressed the importance of flexible payment terms that allow refineries to pay in cedis, aligning with prior instructions from government officials to facilitate such trade terms. The COPEC CEO warned that dollar payments could increase foreign exchange demand, further pressuring the cedi.
As Ghana aims to expand its domestic refining capabilities, COPEC's proposal is seen as a step toward reducing reliance on imported petroleum products. Sentuo Oil Refinery has already received its first crude cargo under the new supply arrangement, and a cedi-based payment system could lessen direct dollar demand, contingent on favorable commercial terms.