The National Petroleum Authority (NPA) has expressed confidence that Sentuo Oil Refinery will maintain consistent fuel production through December 2026, providing a crucial source of domestic supply alongside imports. NPA Chief Executive Godwin Kudzo Tameklo made this assurance in an interview with JoyNews on September 18. This development comes amid renewed attention to the role of local refineries in strengthening Ghana's fuel supply and reducing reliance on imported petroleum products.
The Chamber of Bulk Oil Distributors (CBOD) has also emphasized the importance of having Sentuo and the Tema Oil Refinery operating domestically. Chief Executive of CBOD, Dr. Patrick Kwaku Ofori, highlighted that having the two in-country refineries reduces the burden of product supply insecurity. He estimated that the two refineries could potentially meet between 25% and 30% of Ghana's national fuel consumption, with imports supplying the remainder.
Dr. Ofori called for increased refining capacity and improved efficiency to enable a greater share of the country's petroleum needs to be met locally. However, he cautioned that increased domestic refining would not automatically translate into cheaper fuel at the pumps, as refineries still purchase crude at internationally benchmarked prices. This means that pump prices will continue to be influenced by international crude prices and other market factors.
Dr. Ofori also criticized the GH¢2-per-litre fuel subsidy, arguing that the policy may not provide equal benefits to all consumers. Instead, he advocated for greater investment in public transport and a long-term energy strategy. Additionally, he warned that prolonged disruptions in global petroleum supplies could still affect Ghana, emphasizing the need for a robust fuel supply strategy.
For consumers, the expected consistency in Sentuo's production addresses domestic supply capacity concerns. However, the impact on pump prices remains uncertain, as they are influenced by international crude prices and other market factors. The NPA's assurance on Sentuo's production provides some relief, but the fuel market remains subject to global trends and supply chain disruptions.
The government's efforts to cushion consumers against fuel price hikes are ongoing, with several options being considered. The NPA is working to ensure that fuel supply remains stable, and the authority is exploring strategies to mitigate the impact of global price fluctuations on the local market. This includes putting buffers in place to prevent fuel firms from holding Ghana to ransom.
The fuel market in Ghana is closely watched, as it has significant implications for the economy. The NPA's efforts to ensure a stable fuel supply, combined with the CBOD's push for increased domestic refining, aim to reduce the country's reliance on imported petroleum products and promote energy security. As the situation continues to evolve, consumers will be watching closely for any changes in pump prices and fuel availability.
Key points
- The National Petroleum Authority (NPA) expects Sentuo Oil Refinery to maintain consistent fuel production through December 2026.
- Increased domestic refining in Ghana may not automatically lead to cheaper fuel at the pumps.
- The Chamber of Bulk Oil Distributors (CBOD) estimates that local refineries could meet 25-30% of Ghana's national fuel consumption.
