Ghana Raises Fuel Price Floor as NPA Warns of Global Market Vulnerability
Ghana's National Petroleum Authority (NPA) is managing significant turbulence in the downstream petroleum sector, with CEO Godwin Edudzi Tamakloe asserting preparedness amidst rising international fuel prices and the country's import dependency. Concurrently, domestic refining, notably by Sentuo Oil Refinery, is being leveraged to boost local supply, though experts caution it may not directly lower pump prices.
Ghana’s downstream petroleum sector is facing renewed pressure from elevated international crude and refined-product prices, with the country’s dependence on imported fuel leaving the market exposed to global shocks.
The National Petroleum Authority (NPA) responded by raising the price floor to GH¢16 per litre for petrol and GH¢16.77 for diesel from September 16, prompting some Oil Marketing Companies to increase pump prices. Star Oil, for instance, began selling petrol at GH¢16.77 and diesel at GH¢17.77 per litre.
NPA Chief Executive Officer Godwin Edudzi Tamakloe said the Authority had anticipated disruptions arising from Ghana’s dependence on imported refined petroleum products and had been managing the current turbulence since February. Speaking on Joy News’ PM Express Business Edition, Tamakloe said the Authority remained prepared to respond to changing market conditions, adding that “the management so far has not been bad at all.”
Meanwhile, the state-owned Bulk Oil Storage and Transportation Company (BOST) has reduced fuel exports to neighbouring countries including Burkina Faso and Mali, prioritising domestic supply amid tighter global conditions.
The NPA also expects Sentuo Oil Refinery to maintain fuel production through December 2026, while the Chamber of Bulk Oil Distributors said the combined operation of Sentuo and the Tema Oil Refinery could supply 25% to 30% of Ghana’s fuel consumption. However, CBOD Chief Executive Dr Patrick Kwaku Ofori cautioned that increased domestic refining would not automatically translate into lower pump prices because local refineries still purchase crude at internationally benchmarked prices.
He also criticised the GH¢2-per-litre fuel subsidy as potentially inequitable, advocating instead for stronger public transport investment and a long-term energy strategy while warning that Ghana would remain exposed to global petroleum supply disruptions even as domestic refining capacity expands.