Ghana’s Minister of Energy and Green Transition John Abdulai Jinapor has disclosed that the country is planning a comprehensive review of its petroleum downstream to make the sector more viable, efficient and sustainable.
According to him, a working committee will soon be put in place to consult sector agencies and petroleum service providers to improve service delivery in the petroleum downstream sector.
“These consultations will consider and deliberate on key interventions such as the promulgation of a downstream law, a review of the margins, taxes and levies in the Price Build Up (PBU) of petroleum products, diversification of petroleum products supply sources, implementation of a cost-reflective tariff framework, development of a low carbon fuel market scheme, modernisation of the state-owned refinery through strategic partnership, to mention but a few,” the Minister explained.
Continuing, he said, “I strongly believe that with co-operation and full support from industry, such interventions will result in improved fuel security, improved financial performance and regulatory oversight of the sector, an effective and efficient distribution system, penetration of low carbon fuels in the downstream market and affordable and stabilised fuel prices.”
Speaking at the maiden Downstream Dialogue 2025 organised by the Chamber of Oil Marketing Companies (COMAC), formerly AOMC, Minister Jinapor noted that although the downstream sector is plagued with challenges, it presents a myriad of opportunities that we can capitalise on.
He mentioned that the increasing demand for petroleum products and the dynamic nature of the petroleum downstream sector open an avenue for infrastructural development and expansion, adoption of new and innovative technologies, increased Ghanaian content and Ghanaian participation, and increased petroleum products supply.
He added that the need for reforms also presents an opportunity for public-private partnerships to execute critical sector development projects and programmes.
As the world pivots towards cleaner energy sources, the Minister said “there is a pressing need to diversify our energy mix.”
“We have the opportunity to blend our oil and gas development with investments in renewable energy,” he said.
He indicated that there were discussions on the introduction of biofuel blends in our petroleum products mix with the intention of reducing carbon emissions in the transportation sector that ensued last year.
The Minister, who commended the organisers of the Downstream Dialogue, said his outfit was committed to creating an enabling environment that fosters growth, collaboration, and ensures that the benefits of our resources are equitably distributed.
Source: https://energynewsafrica.com
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