The National Petroleum Authority (NPA) is intensifying efforts to curb the substantial demurrage costs incurred by Bulk Oil Distributors (BDCs), which ultimately drive up fuel prices for consumers.

Currently, these charges amount to approximately $35 million annually, a figure the NPA considers unsustainable.

Speaking at the 2025 Downstream Dialogue, organized by the Chamber of Oil Marketing Companies (COMAC) in Accra, the Acting Chief Executive Officer (CEO) of NPA, Edudzi Tameklo, underscored the importance of addressing the issue to ease financial pressure on consumers and industry stakeholders.

“There are also structural challenges within the industry. I met with the bulk oil marketing companies and their chamber, and the estimated cost of demurrage—because they do not have immediate laycans—is about $35 million annually. That’s huge, and they end up passing that cost onto the final consumer.

“They’re not ‘Father Christmas’; they’re not in business to make losses. So, if demurrage alone is costing them $35 million annually, you can imagine what could be achieved if, together with the vision of my sector minister, we find an alternative structure that greatly reduces delays at the port, particularly in the discharge of petroleum,” Tameklo noted.

To further enhance efficiency in the petroleum downstream sector, the acting NPA boss revealed plans to introduce automatic fuel dispensers to support the government's 24-hour economy initiative. This move, he said, would streamline fuel distribution and improve accessibility.

The Chief Executive Officer (CEO) of COMAC, Dr. Riverson Oppong, acknowledged the financial challenges facing the downstream sector and expressed the Chamber’s commitment to seeking support from financial institutions to boost liquidity and sustain businesses.

“Financing remains a major challenge for businesses in the downstream sector. As such, we will explore the intersection of industry and banking collaboration. Unlocking financing and investment opportunities is essential to enhancing liquidity, fostering expansion, and ensuring the long-term viability of our sector,” he noted.

Meanwhile, Minister of Energy and Green Transition, John Jinapor, reiterated his ministry’s commitment to implementing structural reforms to enhance efficiency and promote local participation in the industry.

“Although this sector is plagued with numerous challenges, it also presents a myriad of opportunities we can capitalize on. The increasing demand for petroleum products and the dynamic nature of the petroleum sector open avenues for infrastructure development, the adoption of new and innovative technologies, increased local content participation, and ensuring that we anchor this sector to propel accelerated and inclusive growth for this country.

“The need for reforms also presents an opportunity for public-private partnerships to execute critical sector development projects and programmes,” the Minister stated.

The two-day dialogue, themed “Ghana’s Downstream Oil and Gas Sector: Challenges and Opportunities,” aims to foster collaboration and explore sustainable solutions for the sector’s growth and efficiency.