The National Petroleum Authority (NPA) is exploring alternative strategies to reduce the high demurrage costs incurred by Bulk Oil Distributors (BDCs) at petroleum discharge ports.
These charges, totaling $35 million annually, have raised concerns within the Authority.
The NPA believes these excessive costs ultimately burden consumers through higher fuel prices. Speaking at the 2025 Downstream Dialogue, organized by the Chamber of Oil Marketing Companies (COMAC) in Accra, the Acting Chief Executive Officer (CEO) of NPA, Edudzi Tameklo emphasized the urgency of finding alternative solutions to address the issue.
“There are also structural challenges within the industry. I met with the bulk oil marketing companies and their chamber, and the estimated cost of demurrage—because they do not have immediate laycans—is about $35 million annually. That’s huge, and they end up passing that cost onto the final consumer.
“They’re not ‘Father Christmas’; they’re not in business to make losses. So, if demurrage alone is costing them $35 million annually, you can imagine what could be achieved if, together with the vision of my sector minister, we find an alternative structure that greatly reduces delays at the port, particularly in the discharge of petroleum,” Tameklo noted.
The acting CEO of NPA also announced plans to deploy automatic fuel dispensers as part of efforts to support the 24-hour economy initiative.
The Chief Executive Officer (CEO) of COMAC, Dr. Riverson Oppong expressed the Chamber’s intention to seek financial support from banks and other institutions to strengthen businesses in the downstream sector.
“Financing remains a major challenge for businesses in the downstream sector. As such, we will explore the intersection of industry and banking collaboration. Unlocking financing and investment opportunities is essential to enhancing liquidity, fostering expansion, and ensuring the long-term viability of our sector,” he noted.
Minister of Energy and Green Transition, John Jinapor, reaffirmed his commitment to reforming the downstream petroleum sector by tackling structural challenges and promoting local content investment.
“Although this sector is plagued with numerous challenges, it also presents a myriad of opportunities we can capitalize on. The increasing demand for petroleum products and the dynamic nature of the petroleum sector open avenues for infrastructure development, the adoption of new and innovative technologies, increased local content participation, and ensuring that we anchor this sector to propel accelerated and inclusive growth for this country.
“The need for reforms also presents an opportunity for public-private partnerships to execute critical sector development projects and programmes,” the Minister stated.
The two-day dialogue is themed: Ghana’s Downstream Oil and Gas Sector: Challenges and Opportunities.
