Ghana’s Petroleum Downstream Sector: Strong, Essential and Long Overdue for Reform

Godwin Tamakle, CEO NPA

The petroleum downstream sector rarely features in everyday public debate unless fuel prices rise or queues form at filling stations. Yet this sector quietly underpins Ghana’s economy. It contributes between 5 and 6 per cent of GDP, handles about 5.5 million tonnes of petroleum products annually, and has an estimated economic impact exceeding US$6 billion.

At a recent Meet the Press engagement, the Chief Executive Officer of the National Petroleum Authority (NPA), Mr Edudzi Tamaklo, offered a sobering but hopeful picture of a sector that has survived more on resilience than deliberate planning and one that is now being repositioned for sustainability.

Infrastructure Gaps We Can No Longer Ignore

One of the most critical weaknesses in Ghana’s downstream petroleum system is infrastructure. By reason of geography and historical investment patterns, the southern corridor remains the primary entry point for petroleum products, yet it relies heavily on a single, ageing jetty that has seen limited modernisation.

The situation is even more concerning in the Western Region, where there is no publicly owned petroleum storage facility. Dependence on private storage has resulted in congestion, long vessel queues, and the payment of avoidable demurrage costs, costs that eventually find their way into the pricing structure.

The establishment of a Laycan Advisory Committee to manage vessel schedules is a positive step. However, it is only a temporary solution. The real answer lies in new and modern infrastructure, and it is encouraging that, with support from the Sector Minister, a new facility is currently under construction.

The Forgotten Workers Who Keep Ghana Moving

Perhaps the most compelling part of Mr Tamaklo’s presentation was his focus on tanker drivers and their mates; men who criss-cross the country daily to ensure fuel reaches every corner of Ghana.

For years, these drivers have operated under difficult conditions, often without guaranteed salaries, medical cover, or structured welfare systems. Yet they are the backbone of fuel distribution.

The NPA Board’s approval of a welfare framework, including a baseline salary and medical support, is therefore not just administrative reform; it is social justice. A system that depends on human labour must also protect it.

Technology, Transparency and Control

The downstream sector has long battled issues of product diversion and unexplained losses. The increasing use of technology to track tanker movements and monitor product volumes is a welcome development.

Equally important is the introduction of an Oil Loss Control Manual, designed to assist institutions such as BOST in resolving disputes and enforcing accountability across the supply chain. These measures signal a shift towards transparency and predictability, both of which are critical for investor confidence and public trust.

Fuel Prices and Economic Stability

Fuel prices remain a sensitive issue for households and businesses alike. Mr Tamaklo expressed cautious optimism that petroleum prices may see some reduction in the coming month, supported by improved FOB pricing and relative exchange rate stability.

His commendation of Sammy Gyamfi and the Governor of the Bank of Ghana underscores an important reality: fuel pricing is not determined by oil markets alone but by broader fiscal and monetary discipline.

Cylinder Recirculation: Reform Without Disruption

The proposed cylinder recirculation model continues to generate debate. Many investors have committed significant resources to the existing system and are understandably resistant to abrupt change.

Rather than impose a one-size-fits-all solution, the NPA appears to be pursuing a balanced approach; allowing both the old and new systems to operate while broader stakeholder engagement continues. In a sector this sensitive, gradual reform is often the wiser path.

A 24-Hour Economy Needs 24-Hour Systems

The government’s vision of a 24-hour economy will succeed only if supporting sectors are prepared. In petroleum distribution, this means addressing long-standing challenges such as security and night-time operations.

At the Tema Jetty, operations largely stop after 5 p.m., partly due to poor lighting and safety concerns. This increases congestion and transport costs. Calls for the Ghana Ports and Harbours Authority (GPHA) to improve lighting and safety infrastructure are therefore practical, not political.

Security remains a major concern, with reports of armed robberies targeting tanker drivers. Collaboration with the Ghana Police Service will be crucial as a pilot 24-hour economy project, scheduled to begin on the 22nd in Osu, gets underway.

Time to Stop Taking Resilience for Granted

The petroleum downstream sector has continued to function even when infrastructure was inadequate and workers were overlooked. That endurance should not be mistaken for optimal performance.

What is emerging now, if sustained; is a shift from survival to strategy. Ghana can no longer afford to take this sector for granted. Reforming it is not optional; it is essential to economic stability, energy security and national development.

GHANA IS WORKING AGAIN

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