The Chief Executive Officer of Ghana’s National Petroleum Authority, Godwin Kudzo Tameklo, made the statement at the ongoing Nigerian International Energy Summit (NIES) in Abuja,
Ghana’s two small refineries lack the capacity to meet the country’s domestic fuel demand, according to him, this explains why Ghana will continue to import both crude oil and refined petroleum.
He added: “We have had extensive engagements with Alhaji Aliko Dangote to position Ghana to take refined products from Nigeria. Given the proximity between Ghana and Nigeria, increased reliance on Nigeria’s refined petroleum products will help us reduce the cost of fuel delivered to Ghana.
Tameklo warns Nigeria
Tameklo also cautioned against regulatory pricing in downstream markets, saying it could distort competition.
“In Ghana, we have a minimum fuel price below which marketers cannot sell. This is to protect the industry and prevent practices that could wipe out key players. Allowing operators to sell below cost as a market-entry strategy can destroy competition,” he said.
Sharing Ghana’s experience, he added: “In 2015, when government was subsidising petrol and could not pay subsidies on time, fuel stations were collapsing. To avoid this, we fully deregulated pricing and allowed market forces to operate. This has helped build a robust and resilient downstream sector.”
In an interview conducted with vanguard Newspaper the Group Vice President (Oil and Gas) of the Dangote Group, Devakumar Edwin, said the refinery has sufficient capacity to meet both domestic and export demand. “The refinery has an installed capacity of 650,000 barrels per day and is currently operating at about 85 per cent, with steady progress toward full utilisation,” he said.
“Nigeria needs only about 50 per cent of our production capacity to meet its petrol and diesel requirements. This leaves significant volumes available for export, and with planned expansions, export volumes will increase further,” he said.
“We produce Premium Motor Spirit (PMS), also known as petrol, and Automotive Gas Oil (AGO), also known as diesel.”
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