Ghana’s efforts to strengthen energy security and reduce dependence on imported petroleum products have received a major boost with plans for Sentuo Oil Refinery to receive approximately one million barrels of crude oil from the Jubilee Field for local processing.
The move is expected to increase domestic refining activity, reduce exposure to global fuel market disruptions, and potentially create conditions for more stable fuel prices in the country.
Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, described the development as a strategic response to growing uncertainties in the international energy market, particularly amid tensions in the Middle East and rising costs associated with importing refined petroleum products.
According to him, supplying locally produced crude oil to domestic refineries makes economic sense, as it allows Ghana to process its own resources rather than exporting crude and subsequently importing refined products at a higher cost.
He noted that local refining could help reduce expenses linked to shipping, insurance premiums, and other international logistics costs that have increased significantly due to disruptions in global energy supply chains.
Mr Amoah said the decision represents one of the most practical measures taken in recent times to strengthen Ghana’s fuel security while retaining greater value within the national economy.
The COPEC Executive Secretary further revealed that the Tema Oil Refinery (TOR) is expected to receive a similar volume of crude oil by the first week of July, signalling a broader policy shift towards supporting domestic refining operations.
The planned crude allocations are expected to ensure a more reliable supply of feedstock to local refineries and improve the country’s capacity to meet part of its fuel demand through domestic production.
While commending the initiative, Mr Amoah called on government to broaden the policy by extending similar support to smaller modular refineries, including Platon and Akwaaba, to encourage wider participation in the downstream petroleum sector.
He argued that enabling additional local refineries to process crude oil would increase competition, expand refining capacity, and support industrial users that depend on refined petroleum products such as residual fuel oil.
Mr Amoah expressed optimism that sustained crude supply to domestic refineries could help cushion consumers against future fuel price shocks by reducing Ghana’s vulnerability to international market volatility.
He noted that with global shipping routes and fuel supply chains facing increasing pressure, strengthening local refining capacity has become a critical component of the country’s long-term energy strategy.
According to him, maintaining the policy throughout the year could contribute significantly to stabilising fuel prices and easing the burden on consumers already grappling with high transportation and energy costs.
The development is being viewed as a significant step towards enhancing Ghana’s energy independence while maximising the value derived from the country’s own petroleum resources.
