See how Dangote Refinery Will Slash Ghana’s Fuel Imports and Reduce Pump Rates

The NPA Ghana’s Chief Executive, reports that Dangote Refinery will decrease Ghana’s petroleum imports and lower pump prices.

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The downstream sector in Ghana, which is currently unregulated, is anticipated to be significantly affected once the refinery is finished. NewsReport learned.

– Due to high import costs and a deregulated downstream industry, Ghana is currently dealing with the challenge of a constant increase in the price of petroleum products.

The West African nation, which has been a net exporter of crude oil since 2010, is highly vulnerable to oil price shocks because it imports a significant share of petroleum products consumed in the country, mainly from Europe (Rotterdam). As a result, their economy is subject to volatility in international markets for crude and petroleum products, as seen recently with the Russia-Ukraine conflict.

Things are, however, expected to change as the Chief Executive Officer of the National Petroleum Authority (NPA) of Ghana, Mustapha Abdul-Hamid, believes the coming onstream of the Dangote Petroleum Refinery is expected to transform the Ghanaian downstream sector.

According to him, the coming onstream of the 650,000 barrels-per-day (BPD) Nigerian refinery will transform the Ghanaian downstream sector through the reduction in the cost of importation of petroleum products into Ghana.

Speaking at the 16th Oil Trading and Logistics Expo in Lagos, Abdul-Hamid said the completion of the Dangote Petroleum Refinery project would be a breakthrough for the West African region, which has for a long time depended on the importation of petroleum products.

“Right now, Ghana’s downstream industry is completely deregulated, and there is no petrol subsidy in Ghana. For a deregulated market where the importers recover their costs fully, importing from Nigeria will certainly be more cost-effective and cheaper than importing from Rotterdam in the Netherlands, where we get the bulk of our fuel in Ghana,” he said.

“As we all know, the price builds up for a liter of fuel will include the cost of shipment, transportation, insurance, and others, but if we are importing from Nigeria into Ghana, this will bring down the cost of fuel in our country,” he added…..