NewzThe CEO of the National Petroleum Authority (NPA), Godwin Edudzi Tamakloe, says Ghana’s dependence on imported refined petroleum products leaves the country exposed to turbulence whenever external market conditions change. His comments come amid renewed pressure on the downstream petroleum sector as international oil and refined-product prices remain elevated. The NPA has raised its price floor for the second September pricing window, with petrol now pegged at GH¢16 per litre and diesel at GH¢16.77.
At the same time, Ghana’s state-owned fuel distributor, BOST, has reduced exports to Burkina Faso and Mali to prioritise domestic supply amid global fuel supply pressures. Speaking on Joy News’ PM Express Business Edition on Thursday, Mr Tamakloe said he understood from the outset that leading the downstream sector meant dealing with external shocks. “Having to be the Chief Executive Officer of the downstream, I appreciated the fact that we are largely import-dependent when it comes to refined petroleum products.” He said he had therefore always prepared for periods of instability in the industry.
“So, I’ve always been, you know, let me say, ready for the potential for turbulence.” According to Mr Tamakloe, Ghana’s downstream petroleum sector is particularly exposed to changes in external factors. “And so it’s been part of the orientation that I’ve had personally, that you are going to, as it were, lead or take charge of an industry that is largely subject to, or, you know, will face turbulence at any time that exogenous or external factors change.” He said the responsibility of leadership is to respond to both favourable and difficult periods. “What I believe is that leadership, in this particular instance, there are issues, and we believe that in a good or bad time, you need to have a leadership response to both sides.” Mr Tamakloe said the NPA has been working to contain the impact of the current turbulence since February.
“And so, I would say that we are kind of ready, and from February till now, we’ve been trying to, as it were, manage the turbulence, manage the storm.” He said the Authority’s handling of the situation so far had been satisfactory. “And the management so far has not been bad at all” He said he assumed leadership of the downstream petroleum sector knowing that external developments could quickly affect the industry.
His comments come as Ghana’s fuel market continues to face pressure from developments in the international petroleum market, with changes in global prices being passed through to pump prices. His comments come at a time when Ghana’s fuel market is facing renewed pressure from higher international prices for crude and refined petroleum products. The NPA increased the price floor for petrol to GH¢16 per litre and diesel to GH¢16.77 per litre from September 16.
Some Oil Marketing Companies have since raised pump prices, with Star Oil pricing petrol at GH¢16.77 and diesel at GH¢17.77 per litre. He said Ghana is largely dependent on imports for refined petroleum products, leaving the sector exposed to external shocks. “It’s been part of the orientation that I’ve had personally, that you are going to, as it were, lead or take charge of an industry that is largely subject to, or, you know, will face turbulence at any time that exogenous or external factors change.” He said effective leadership requires a response whether conditions are favourable or difficult.
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