Ghana is teetering on the brink of a potential fuel crisis, exacerbating the country’s already fragile economic situation.
Recent warnings from energy experts and industry stakeholders have highlighted mounting concerns over fuel shortages, rising prices, and systemic inefficiencies.
As fuel prices near GH₵16 per litre, public anxiety over affordability and supply disruptions continues to grow, placing significant pressure on the National Petroleum Authority (NPA) to act swiftly.
Lawyer Edudzi Tamakloe, the newly appointed Acting Chief Executive Officer of the NPA, steps into office at a critical juncture.
Ensuring nationwide fuel availability and addressing soaring costs are among his top priorities, as fuel supply issues ripple across the economy, affecting businesses and households alike.
One of the key issues hampering Ghana’s downstream petroleum sector is the levies and margins imposed on petroleum products.
These additional costs have been criticised by stakeholders, including the Africa Centre for Energy Policy (ACEP). Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, has called for the removal of margins collected by the NPA and convert them into direct government tax revenues.
“We don’t want NPA to be receiving any margins. Those revenues should accrue directly to the government for development purposes.
“NPA is already paid to do its work, and implicit in the cost of the product, there’s already money allocated for that.”
Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP
Yaotse further argued that the NPA should focus exclusively on ensuring sufficient fuel supply and maintaining product quality, rather than collecting funds for purposes such as transportation.
In the face of petrol supply disruptions, particularly in the northern regions, the NPA has introduced logistical measures to stabilize the market.
Oil Marketing Companies (OMCs) have been granted special dispensation to load fuel from the Bulk Energy Storage and Transportation Company (BOST) depot in Kumasi to serve the five northern regions.
Moreover, many consumers are calling on the government to intervene by suspending certain petroleum product margins, a strategy previously employed to mitigate price hikes.
Whether Acting NPA CEO Tamakloe will work with the government to implement such measures remains uncertain. However, with public confidence waning, bold decisions are urgently needed to stabilize fuel prices and restore trust in the sector.
Path Forward for Ghana’s Petroleum Sector
While these interventions offer temporary relief, the root causes of the supply crisis remain unresolved.
The suspension of the gold-for-oil program, which was initially introduced to reduce the financial strain on fuel imports, and the operational halt at Sentuo Oil’s refining facilities have significantly reduced imports by Bulk Distribution Companies (BDCs).
Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies, has warned about the long-term implications of these disruptions.
“When the gold-for-oil program started, it peaked, and when it peaked, we in the petroleum sector saw this coming,” he said, referencing the current imbalance in the supply chain.
Another contentious issue is the NPA’s 2024 Petroleum Products Pricing Guidelines, which establish a price floor below which OMCs cannot sell their products.
While intended to ensure fair pricing and protect market stability, the policy has drawn criticism from energy experts and think tanks for undermining market competition.
The Chamber of Petroleum Consumers has suggested introducing a price ceiling alongside the price floor to balance market deregulation with consumer protection.
Such a move, advocates argue, would prevent excessive price hikes while still allowing market forces to operate.
The contrasting positions of stakeholders such as ACEP, the Chamber of Oil Marketing Companies, and the Chamber of Petroleum Consumers underscore the complexity of Ghana’s fuel supply challenges.
Resolving these issues will require a collaborative approach involving the government, regulators, and private sector actors.
In a time of economic hardship, ensuring a stable and affordable fuel supply is not just an economic necessity—it is a lifeline for millions of Ghanaians.
As Dr. Oppong aptly noted, “The fuel shortage we find in the market today is the result of systemic issues that demand systemic solutions.”
Tampering with short-term fixes will no longer suffice. Ghana’s energy sector demands bold reforms, transparency, and decisive action to avert a full-blown crisis and secure a sustainable energy future.
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