Constraints in Ghana’s refining capacity are limiting how much petroleum product GOIL Group can source locally, despite the cost advantages of domestic supply.
The company’s Chief Executive Officer and Managing Director, Edward Bawa, revealed that only about 30 per cent of its finished petroleum products are procured from local refineries, with the rest sourced through imports to meet demand.
Speaking in an interview on The Point of View hosted by Bernard Avle on Channel One TV, Mr Bawa explained that the ceiling on local sourcing is largely due to insufficient in-country refining output.
He noted that GOIL typically buys from the Tema Oil Refinery and Sentuo Oil Refinery when market conditions are favourable, but their combined capacity cannot fully meet the company’s supply needs.
Despite the limitation, Mr Bawa emphasised that locally refined petroleum products are generally cheaper than imports, making them an attractive option whenever available.
His comments highlight the broader challenge within Ghana’s downstream petroleum sector, where expanding local refining capacity could reduce reliance on imports and potentially lower fuel costs over time.
