The Centre for Environmental Management and Sustainable Energy (CEMSE) has urged the Ghanaian government to develop a clear and strategic policy targeting the petroleum refining and downstream sector. Benjamin Nsiah, Executive Director of CEMSE, said this policy is essential to strengthen energy security and reduce Ghana’s vulnerability to global oil price fluctuations.
Ghana currently imports a significant portion of its petroleum products, exposing the economy to volatile international prices. Nsiah pointed out that this dependence puts pressure on foreign exchange reserves and the country's trade balance. He said, “Ghana’s reliance on imported petroleum products exposes the economy to external price fluctuations and places additional pressure on the country’s foreign exchange reserves and trade balance.”
While acknowledging the contributions of domestic facilities like Sentuo Oil Refinery and the Tema Oil Refinery (TOR), Nsiah argued that these alone cannot shield the country from long-term challenges without a broader national strategy. “Beyond Sentuo and TOR in the short term, I think that in the medium term, government must develop an industrial policy for the refinery or the petroleum downstream,” he said.
The call comes amid growing concerns about energy security and the sustainability of Ghana’s petroleum supply. Nsiah emphasized that a strategic policy would help the government and investors plan for future demand, refining capacity, and crude oil sourcing. He suggested that the policy should include projections for supply and demand, investment needs for refinery expansion, and reliable sources of crude oil to support domestic production.
Nsiah also drew attention to Section 71 of the Exploration and Production Act, 2016 (Act 919), which outlines domestic crude supply obligations. He recommended that the government enforce these provisions more effectively while exploring strategic partnerships with foreign crude suppliers to secure steady supplies.
The Executive Director called on authorities to determine the additional capacity required by TOR and Sentuo to meet Ghana’s increasing petroleum demand. He said this assessment should include identifying the financial investment needed to expand refinery operations. According to Nsiah, a coordinated approach combining refining capacity, crude oil sourcing, and investment planning is necessary to reduce Ghana’s dependence on imported products and conserve foreign exchange.
This approach, he argued, would enhance Ghana’s ability to withstand external economic shocks linked to oil price volatility. Nsiah maintained that a long-term downstream petroleum strategy is essential for ensuring the consistent availability and accessibility of petroleum products.
The oil refining sector in Ghana has long faced operational and financial challenges. The Tema Oil Refinery, the country’s main refinery, has struggled with outdated infrastructure and inconsistent feedstock supply. Sentuo Oil Refinery, a newer facility, offers some relief but is limited in scale. These issues have contributed to the country’s continued reliance on imports despite domestic crude oil production.
Nsiah’s call comes as Ghana’s economy continues to grapple with external pressures, including fluctuating global oil prices and currency instability. The government’s approach to managing petroleum refining and supply will have direct consequences for energy prices, inflation, and overall economic stability.
The conversation around refining capacity and crude supply is critical as Ghana aims to balance domestic production with imports amid increasing demand. Without a strategic framework, the country risks prolonging its exposure to international market uncertainties.
Nsiah’s recommendations suggest that addressing the sector’s challenges will require coordinated policy action and investment decisions. The government faces the task of crafting a strategy that can guide the petroleum downstream sector toward greater self-reliance.
The details of such a policy, including timelines and specific investment plans, remain to be seen. What is clear is that Ghana’s energy future will depend on how effectively it can manage its refining capabilities and crude oil supply in the coming years.
According to 3News.
