Accra: The government plans to undertake a major review in the petroleum downstream to conform to modern trends, Mr. John Abdulai Jinapor, the Minister of Energy and Green Transition, has announced. The review aims to define rules, inject operational efficiency, increase accountability, and ensure that the public is better served.
According to Ghana News Agency, Mr. Jinapor stated that his predecessor had attempted to review parts of the petroleum sector, but the effort was stalled in Parliament. Addressing the matter comprehensively this time, he emphasized the need for a holistic view of the entire petroleum downstream to better serve the people of Ghana. This announcement was made during separate meetings in Accra with executives of the Chamber of Oil Marketing Companies, Tanker Owners Union, Tankers Drivers Association, and Ghana Chamber of Bulk Oil Distributors.
The meeting serves as a follow-up to an earlier consultation before the 2024 elections, aimed at gathering inputs to formulate the manifesto of the National Democratic Congress. Mr. Jinapor disclosed that a seven-member committee would be established to engage stakeholders and provide advice on addressing challenges in a transparent manner. He also mentioned that the government is reviewing the Gold for Oil programme, with the Minister of Finance working on the gold aspect and plans to set up a gold board.
Revamping the Tema Oil Refinery is a crucial part of the government’s vision, Mr. Jinapor stated, emphasizing the importance of involving local entrepreneurs to align with the local content policy. He also encouraged stakeholders to explore opportunities in the renewable sector, highlighting the gradual transition from traditional fossil fuels to renewable energy sources.
Dr. Patrick Ofori, the Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors, expressed the Chamber’s support for the vision to transform the Tema Oil Refinery. He reiterated the Chamber’s commitment to the government’s green transition initiative, noting that some industrial players are already promoting ethanol and other renewables. The Chamber plans to host the first downstream seminar focused on practicalizing the 24-hour economy.
Dr. Riverson Oppong, the Chief Executive Officer of the Chamber of Oil Marketing Companies, noted the Chamber’s collaboration with the National Petroleum Authority on various interventions, including the introduction of the price deregulation policy and legislation to curb illegal activities like smuggling and fuel adulteration. Since 2017, the Chamber has implemented the downstream safety week to enhance safety awareness in the sector. By 2024, it had contributed over $19 billion in taxes and created nearly 160,000 direct and indirect jobs.
However, Dr. Oppong highlighted operational, stakeholder, and policy issues that require urgent attention. He cited inadequate product availability in Takoradi and Kumasi as reasons for fuel shortages in the middle belt at the end of last year. Additionally, the Integrated Customs Management System has faced constant disruptions for over a month. Dr. Oppong emphasized that any reduction in system challenges could potentially lower retail pump prices, as operational costs passed on to consumers would decrease.