The Chamber of Petroleum Consumers (COPEC) says local refineries should be allowed to pay for crude oil in cedis, arguing that dollar payments could add pressure to Ghana’s foreign exchange market.
Executive Secretary Duncan Amoah said the proposal would match refineries’ crude costs with their revenues, since refined products are sold locally in cedis. He warned that requiring refiners to source dollars could increase competition for foreign currency needed by importers and contribute to pressure on the cedi.
The discussion comes as Tullow Oil supplies crude to Ghanaian refineries under a commercial arrangement intended to support domestic refining. Sentuo Oil Refinery received the first cargo under the arrangement earlier this year.
Amoah said the terms should protect the interests of the upstream producers, the state and local refiners. He also said President John Dramani Mahama had instructed the Energy and Finance Ministers to ensure refineries were offered flexible trade terms, including the option of paying in local currency.
Whether cedi payments can be adopted will depend on the final commercial terms and how they meet the foreign exchange needs of the crude suppliers and other parties.
