The National Petroleum Authority (NPA) is taking decisive steps to curb the high demurrage costs incurred by Bulk Oil Distributors (BDCs) at petroleum discharge ports.
These charges, amounting to approximately $35 million annually, have raised significant concerns within the Authority due to their cascading effect on fuel prices for consumers.
During the 2025 Downstream Dialogue, organized by the Chamber of Oil Marketing Companies (COMAC) in Accra, the Acting Chief Executive Officer (CEO) of the NPA, Edudzi Tameklo, highlighted the urgency of addressing this issue.
He underscored the impact of excessive demurrage charges on the final consumer and emphasized the need for an alternative structure to reduce delays in petroleum discharge processes.
“There are also structural challenges within the industry. I met with the bulk oil marketing companies and their chamber, and the estimated cost of demurrage because they do not have immediate laycans is about $35 million annually.
“That’s huge, and they end up passing that cost onto the final consumer.”
Edudzi Tameklo,Acting Chief Executive Officer (CEO) of the NPA
Demurrage costs arise when vessels experience delays in offloading petroleum products at the port. These delays, often caused by congestion, inefficient scheduling, and inadequate laycan allocation, translate into additional costs for BDCs.
Recognizing that BDCs operate as profit-driven entities, the NPA is actively seeking solutions to minimize these costs.
Tameklo noted that if a more efficient system is established, these savings could be redirected towards improving the sector’s operational efficiency and enhancing fuel affordability.
To mitigate the issue, the NPA is considering multiple approaches, including streamlining the laycan allocation process, optimizing port scheduling, and introducing automated petroleum discharge systems. These measures aim to enhance efficiency and reduce unnecessary waiting times for vessels.
“They’re not ‘Father Christmas’; they’re not in business to make losses.
“So, if demurrage alone is costing them $35 million annually, you can imagine what could be achieved if, together with the vision of my sector minister, we find an alternative structure that greatly reduces delays at the port, particularly in the discharge of petroleum.”
Edudzi Tameklo,Acting Chief Executive Officer (CEO) of the NPA
Additionally, the NPA is working closely with the Ghana Ports and Harbours Authority (GPHA) to establish a more coordinated framework for vessel scheduling and petroleum discharge management.
By ensuring timely processing and reducing congestion at ports, the Authority hopes to minimize demurrage-related expenses.
Addressing Downstream Financing Challenges
One of the major challenges facing businesses in Ghana’s downstream petroleum sector is access to financing. Speaking at the event, the CEO of COMAC, Dr. Riverson Oppong, emphasized the need for financial support to strengthen industry players and foster business growth.
“Financing remains a major challenge for businesses in the downstream sector. As such, we will explore the intersection of industry and banking collaboration.
“Unlocking financing and investment opportunities is essential to enhancing liquidity, fostering expansion, and ensuring the long-term viability of our sector.”
Dr. Riverson Oppong, CEO of COMAC
Industry stakeholders have called for increased public-private partnerships (PPPs) to develop strategic infrastructure, such as additional petroleum storage facilities and improved port logistics, to facilitate smoother operations within the sector.
Minister of Energy and Green Transition, Hon. John Jinapor, reaffirmed the government’s commitment to tackling structural challenges within the downstream petroleum sector.
He emphasized the importance of local content participation, infrastructure development, and technology integration to enhance the industry’s sustainability.
“Although this sector is plagued with numerous challenges, it also presents a myriad of opportunities we can capitalize on.
“The increasing demand for petroleum products and the dynamic nature of the petroleum sector open avenues for infrastructure development.”
Hon. John Jinapor, Minister of Energy and Green Transition
He further stressed the need for reforms that promote efficiency and encourage investment.
According to the Minister, the government is working on policies that will create a more favorable business environment, enabling both local and foreign investors to thrive in Ghana’s petroleum industry.
The NPA’s proactive approach to tackling the high demurrage costs incurred by BDCs is a significant step towards enhancing the efficiency of Ghana’s downstream petroleum sector.
With ongoing discussions on alternative strategies, coupled with the deployment of technology-driven solutions and increased financial support for businesses, the sector is poised for transformation.
The outcome of these initiatives will be crucial in ensuring stable fuel prices, promoting investment, and securing long-term energy security for the country.
As the two-day Downstream Dialogue continues under the theme “Ghana’s Downstream Oil and Gas Sector: Challenges and Opportunities,” industry stakeholders remain optimistic that collective efforts will drive meaningful reforms in the sector.
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