Ghana’s quest towards becoming a fuel sufficient country is gradually being achieved, according to the National Petroleum Authority (NPA). The authority has put in place innovative policies and interventions that have helped secure the country’s credentials as a hub for fuel supply in the sub-region.
One of such policies is the Gold for Oil programme championed by the Vice President, which has helped to ensure a constant supply of oil. The programme has seen the delivery of ten shiploads of oil to the country, helping to mitigate the risks of supply shortages.
The NPA is also actively advocating for the revival of the Tema Oil Refinery and facilitating the construction of a new oil refinery, which is expected to provide half of the nation’s demand. These efforts, along with the Lycan Allocation Programme, which monitors extensively the distribution and consumption trends, have helped to ensure fuel availability and promote the supply of fuel to countries in West Africa.
For the most part, the mix of policies and interventions has enabled the smooth running of the downstream petroleum sector in the face of growing threats and risks to supply, including geopolitics, climate action policies, and forex liquidity risks. Through the Gold for Oil programme and various interventions by the Bank of Ghana, the threats to supply are being mitigated.
However, the Volta and Oti Regions have witnessed an increase in fuel smuggling from neighbouring Togo, which affects the industry and state revenue. The NPA is seeking the support of the Togolese authorities in addressing the illicit trade and is partnering with the police and other security agencies.
In a nutshell, the NPA’s efforts towards achieving fuel sufficiency in Ghana are commendable. The country is gradually becoming a hub for fuel supply in the sub-region, thanks to innovative policies and interventions. However, more needs to be done to address the challenge of fuel smuggling, which poses a threat to the industry and state revenue.