In 2023, Ghana’s domestic downstream petroleum sector achieved a value surpassing GH¢71 billion, contributing about 8.4 percent to the country’s Gross Domestic Product (GDP), according to Dr. Mustapha Abdul-Hamid, CEO of the National Petroleum Authority (NPA).
The industry, which comprises over 3,000 service providers, is marked by significant local participation and delivers over 4 million metric tonnes of petroleum products each year. Dr. Abdul-Hamid noted that the sector has consistently generated an average annual revenue exceeding GH¢35 billion over the last seven years.
“Increased private sector participation has transformed the petroleum downstream industry into a vibrant and dynamic sector, playing a crucial role in the economy’s growth and development,” he added.
Petroleum product consumption in 2023 rose by 6.4 percent to 4.49 million metric tonnes, recovering from a 9.0 percent drop in 2022. Consumption is anticipated to continue its upward trend in 2024, approaching the 4.64 million metric tonnes peak seen in 2021.
At the Ghana International Petroleum Conference 2024 (GHIPCON) in Accra, Dr. Abdul-Hamid highlighted the industry’s role as a key supplier to neighboring countries like Mali, Niger, Côte d’Ivoire, Togo, and Burkina Faso. In 2023, Ghana re-exported and transited 385,154,100 litres of petroleum products to these countries, reflecting the NPA’s success in addressing illicit fuel activities.
Additionally, he announced that Senegal and Gambia have begun importing petroleum products from Ghana, further extending the sector’s regional influence.
“The NPA recognises the vibrant and dynamic nature of our industry and is committed to formulating and implementing innovative strategies and policies that will ensure the industry remains efficient and profitable, and at the same time ensure consumers get the best value for money,” he said.
He emphasized the shift to a transparent daily deregulated pricing formula for petroleum products. Ghana is among the few African nations using low-sulfur fuels, with imports generally below 50 ppm, and has a zero-tolerance policy for toxic fuels.
The NPA’s technology-driven efforts, such as the Petroleum Products Marking Scheme and Bulk Road Vehicle Tracking project, have enhanced the monitoring and integrity of product quality and quantity. The new Cylinder Recirculation Model (CRM) for LPG distribution, being implemented in the Greater Accra Region, aims to improve the safety and efficiency of LPG delivery.
Despite these advancements, challenges remain, particularly with illicit activities. In 2023, the NPA seized 889,650 litres of diverted and smuggled petroleum products and imposed penalties on offending Petroleum Service Providers (PSPs).
The Ghana International Petroleum Conference (GHIPCON) 2024, themed “The Petroleum Downstream: Building a Future for Growth, Efficiency, and Sustainability,” is organized by the NPA in partnership with the Ministry of Energy, the Chamber of Bulk Oil Distributors (CBOD), and the Association of Oil Marketing Companies (AOMC). The conference aims to address critical issues and explore opportunities in the sector.
Herbert Krapa, Minister of State for the Ministry of Energy, speaking on behalf of Vice President Dr. Mahamudu Bawumia, emphasized that the African Continental Free Trade Area (AfCFTA) presents significant opportunities for the petroleum downstream industry. “AfCFTA can enhance market access, boost investment, and drive economic growth by removing trade barriers and promoting regional integration,” he stated.
He reaffirmed the government’s commitment to increasing Ghanaian participation across the downstream petroleum value chain, supporting policies that promote local content, build capacity, and create opportunities for Ghanaians. Krapa also advocated for a long-term strategy focused on sustainability, urging the use of data to inform decisions and track emissions reductions throughout the industry.