Delays in delivering fuel at Ghana's ports resulted in $60 million in demurrage fees paid to shipping lines last year, as reported by the Consumer Unity & Trust Society (CUTS). The West African Regional Director of CUTS International, Appiah Adomako Kusi, revealed this information during an interview on the Citi Breakfast Show. He attributed the delays to inefficiencies in discharging finished fuel products at the ports, which impose high costs on businesses.
The challenges in Ghana's logistics system extend beyond petroleum products. According to Mr. Adomako Kusi, there are also delays in importing clinker and complaints from freight forwarders about difficulties in clearing cargo at the airport. Furthermore, he cited the high cost of domestic air transport as another challenge. These issues highlight the need to review how goods and services are moved across the country.
To address these challenges, Mr. Adomako Kusi urged policymakers to approach logistics as an efficiency and engineering challenge. He emphasized that improving the logistics system could reduce unnecessary expenditure and enhance efficiency. Failure to address existing gaps, he warned, would continue to increase costs without commensurate benefits.
Despite rising fuel prices on the global market, Ghana is unlikely to face an imminent fuel shortage. According to the National Petroleum Authority (NPA), fuel stocks already available in the country, along with additional consignments currently in transit, will help ensure a steady supply to the domestic market. The NPA Chief Executive Officer, Godwin Edudzi Tamakloe, noted that the country has not less than 6 weeks of fuel cover.
The International Energy Agency expects global oil supplies to fall significantly in 2026, with refined fuel inventories also declining amid tighter market conditions. In response to the tightening global petroleum supplies, Ghana's state-owned fuel distributor, BOST Energies, has reduced the amount of diesel and gasoline exports to neighbouring Burkina Faso and Mali.
BOST Energies' Managing Director, Afetsi Awoonor, announced that Ghana had reduced exports since August. During the same period, BOST exported 10,000 tons of fuel to Mali, though the country had requested an extra 40,000 tons for August and September. The reduction in exports aims to prioritise domestic fuel supply and protect local price stability.
The ongoing conflict in Ukraine and the Middle East is negatively impacting oil and gas supplies globally, leading to increased petroleum product prices. In Ghana, the price of petrol at Star Oil increased from GH¢15.17 to GH¢16.77 per litre, representing an increase of about 10.5%, while the price of diesel increased by 4.71%, from GH¢16.97 to GH¢17.77 per litre.
Key points
- Fuel delivery delays cost Ghana $60m in demurrage fees last year.
- Ghana's logistics system faces challenges beyond petroleum products, including delays in importing clinker and clearing cargo at the airport.
- The country has reduced fuel exports to neighbouring countries to prioritise domestic supply amid tighter global petroleum supplies.
