The Ghanaian government is planning a thorough review of the petroleum downstream sector to enhance accountability, operational efficiency, and public service. The initiative involves establishing a committee for stakeholder engagement and is aligned with plans for the Gold for Oil program and revitalization of the Tema Oil Refinery. Stakeholders are encouraged to explore opportunities in renewable energy.
The Ghanaian government is set to conduct a comprehensive review of its petroleum downstream sector to align it with contemporary industry standards, according to Mr. John Abdulai Jinapor, the Minister of Energy and Green Transition. This initiative aims to clarify regulations, enhance operational efficiency, boost accountability, and improve public service delivery within the sector.
Mr. Jinapor highlighted that previous attempts to reform parts of the petroleum sector had stalled in Parliament. Thus, this upcoming review will adopt a holistic approach to ensure that all aspects of the petroleum downstream effectively serve the people of Ghana.
During meetings with key stakeholders, including oil marketing companies and tanker associations in Accra, Mr. Jinapor emphasized the importance of gathering input to shape the National Democratic Congress’s manifesto for the upcoming elections.
A seven-member committee will be created to engage relevant stakeholders and provide guidance on transparent solutions to sector challenges. The government is also reassessing the Gold for Oil program while the Finance Minister is preparing a new gold board.
Revitalizing the Tema Oil Refinery is a critical goal, with a focus on involving local entrepreneurs to enhance operations in accordance with Ghana’s local content policy. Additionally, stakeholders are encouraged to explore opportunities in renewable energy, anticipating a shift from traditional fossil fuels.
Dr. Patrick Ofori, CEO of the Ghana Chamber of Bulk Oil Distributors, expressed support for the transformational vision for the Tema Oil Refinery, noting the chamber’s commitment to embracing green transition initiatives.
The chamber plans to conduct a seminar to explore practical 24-hour economy implementation. Meanwhile, the Chamber of Oil Marketing Companies continues collaborating with the National Petroleum Authority to introduce vital policies such as price deregulation and measures against illegal practices, including fuel smuggling.
With a contribution of over $19 billion to taxes and the generation of approximately 160,000 jobs as of 2024, the chamber faces significant operational and policy challenges that require immediate attention. Dr. Oppong pointed out recent fuel shortages and disruptions to the Integrated Customs Management System as contributing factors to these challenges.
As prices rise, he noted that oil marketing companies operate on a pass-through cost system, meaning any added costs directly reflect on retail pump prices. If systemic issues are resolved, price adjustments may become feasible for retail customers.
The article addresses the Ghanaian government’s initiative to undertake a significant review of the petroleum downstream sector. This move, led by the Minister of Energy, aims to modernize policies and operations while increasing accountability and efficiency. The background illustrates historical challenges in reform efforts, highlighting the necessity for stakeholder involvement and the integration of renewable energy sources as the sector evolves.
Overall, the Ghanaian government is proactively seeking to revitalize its petroleum downstream sector through a comprehensive review and reform process. Key initiatives include engaging stakeholders, improving operational efficiency, and transitioning to renewable energy. The establishment of a committee to address challenges transparently indicates a commitment to reform and modernization within the sector.
Original Source: www.ghanabusinessnews.com
