A recent report by the Ghana Statistical Service reveals that 10 products accounted for a third (33.4 per cent) of all imports into Ghana in 2024, with diesel and petrol topping the list.

The highest import value was recorded for diesel – automotive gas oil (AGO) for Tema Oil Refinery, amounting to GH¢28.9 billion.

 This was followed by light oils, motor spirit, super, with a value of GH¢24.1 billion.

Other significant imports included self-propelled bulldozers with a 360 revolving superstructure (GH¢6.2 billion), cement clinkers (GH¢4.8 billion), and used vehicles with engine capacity between 1500cc and 3000cc (GH¢4.2 billion).

The report also highlighted the trade surplus of GH¢32.1 billion that Ghana recorded through intra-African trade in 2024, compared to GH¢20.7 billion in 2023.

Source: GNA

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The President John Mahama says the New Patriotic Party (NPP) government left behind a staggering GH¢70 billion energy sector debt as at the end of December 2024.

Giving the State of the Nation address in Parliament yesterday February 27, 2025, President Mahama said, “despite collecting over GH¢45 billion in Energy Sector Levies (ESLA) over the last eight years, the outgone NPP administration has left the Ghanaian people an energy sector burdened with a staggering GH¢70 billion debt as of December 2024.”

He also said it is of deep concern that several state-owned enterprises (SOEs) in the energy sector are struggling to stay afloat. “Unless urgent interventions are made, many of them will go under,” he said.

The president indicated that financial distress in the energy sector remains a significant obstacle to delivering consistent and affordable electricity to Ghanaians and poses an existential threat to the economy in general.

He added that compounding these challenges, critical maintenance activities—such as the scheduled pigging of the West African Gas Pipeline (WAPCO)—were postponed from 2024 to 2025 without sufficient contingency measures for alternative fuel supply.

“As a result, my administration has had to swiftly mobilise resources to secure emergency fuel supplies, ensuring that electricity generation continues despite the difficult circumstances.

I have been informed that the pigging exercise will be completed in the first weeks of March. Once additional gas flows from Nigeria, we anticipate a marked improvement in the power situation,” he said.

The President indicating that the current state of the energy sector poses grave concerns, assured Ghanaians that his government remains resolute in its commitment to restoring stability.

“I have directed the Minister for Energy and Green Transitions to implement far-reaching reforms, including enforcing a single revenue collection account, strictly adhering to the Cash Waterfall Mechanism (CWM), and eliminating wasteful expenditures.

The Minister, following my directive has set up an advisory committee to guide the participation of the private sector in metering and billing in order to improve efficiency in revenue collection and reduce the high commercial and technical losses that are threatening to drown the state-owned utility company,” he said.

He also said a pilot partnership between Electricity Company of Ghana (ECG) and Enclave power has proved highly successful and provides a workable framework.

“ECG provides bulk supply of power to Enclave Power Limited. Enclave Power provides meters and bills all companies operating in the Free Zones Enclave with 99% revenue collection and nearly 100% uptime in power supply.

Reduction in commercial and technical losses will lead to affordable tariffs for everyone and bring relief to all users of electric power. We also aim in the medium term to achieve 100% gas utilisation for power production and eliminate the use of crude oil,” he said.

By Emmanuel K Dogbevi

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The government will, next week, commence negotiations with officials of N-Gas Limited of Nigeria to pay $37.5 million, being part of the debt owed for the supply of gas to power plants in Ghana.

The move is to ensure the continued supply of gas after the mandatory ongoing maintenance work on the gas pipelines, to be completed on March 2, 2025.

Mr John Abdulai Jinapor, the Minister of Energy and Green Transition, told journalists after touring the West Africa Gas Pipeline Company Limited (WAPCo), the regulating and metering station in Tema, on Friday, to learn about the progress of work.

WAPCo, operators of the 569-kilometre pipeline from Nigeria through Tema to Takoradi in Ghana, temporarily shut down gas transmission on February 5, 2025, to enable it to undertake maintenance work, which includes cleaning and inspections of the line.

Mr Jinapor said N-Gas issued a letter threatening to cease the supply of gas to Ghana due to a $75-million debt incurred over the years.

“Government’s concentration is to solve the problem. We will do everything possible to ensure that after the gas pipeline cleaning activity, gas flow resumes to keep the lights on because the health and growth of the economy depends on access to stable power,” he said.

He commended WAPCo and its stakeholder in the cleaning activity for working frantically to ensure that the timelines were met.

Dr Isaac Adjei Doku, the General Manager, Corporate Affairs, briefing the Minister and his officials, gave an assurance that barring any unforeseen circumstances, the ongoing maintenance work on the gas pipelines will be completed on March 2, 2025.

He explained that the shutdown was to enable them to launch the Pipeline Inspection Gauge (PIG) into the pipeline to clean and inspect it as required by the regulations.

Dr Doku stated that three PIGs have been successfully launched from Tema to Takoradi with the fourth one on its way, expected to be received in the early hours of Saturday, February 22.

He explained that with the arrival of the fourth one, the final PIG, which was referred to as the intelligent PIG, would be launched to complete the process.

The intelligent PIG helps to collect data on the interior of the pipeline.

As part of the exercise, WAPCo was replacing two subsea valves passing through Tema and Cotonou, explaining that the replacement vessel got into position on Monday, 18 kilometers in the sea from the Tema Regulating and Metering Station.

Source: GNA

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The West Africa Gas Pipeline Company Limited (WAPCo) has stated that ongoing maintenance work on the gas pipelines will be completed on March 02, 2025, as 70 per cent of the work has since been completed.

The company that operates the 569-kilometre pipeline from Nigeria through Tema to Takoradi in Ghana temporarily shut down gas transmission on February 5, 2025, to enable it to undertake maintenance work, which includes cleaning and inspections of the line.

Mr Benoni Owusu Ayeh, the Operations and Maintenance Superintendent West, WAPCo, explained that the shutdown enables them to launch the Pipeline Inspection Gauge (PIG) into the pipeline to clean and inspect it as required by regulations.

Mr Ayeh, an Engineer, revealed this during a press conference at WAPCo’s Regulating and Metering Station in Tema.

WAPCo is required by regulations to conduct pigging (the launching of the PIG) every five years to maintain the integrity of the pipeline.

Mr Ayeh indicated that so far three pigs have been successfully launched from Tema to Takoradi with the fourth one on its way and expected to be received in the early hours of Saturday.

He further explained that after receiving the fourth one, the final PIG, which was referred to as the intelligent PIG, would be launched to complete the process.

The intelligent PIG helps to collect data on the interior of the pipeline.

Dr Isaac Adjei Doku, the General Manager, Corporate Affairs, debunked some media reports that Ghana was not receiving gas from Nigeria due to the maintenance, explaining that some gas was coming through as the pigging needs gas to travel through the pipeline.

Dr Doku added that the gas being used for the pigging was being delivered at Takoradi and used for power generation by the Volta River Authority (VRA).

He further said the maintenance period was also being used for the replacement of two subsea valves passing at Tema and Cotonou, revealing that the replacement vessel got into position on Monday, 18 kilometers in the sea from the Tema Regulating and Metering Station.

He added that on Wednesday, lateral depressurisation was done, and the valve replacement commenced and is ongoing.

Ms Michelle Burkett, the Managing Director of WAPCo, appealed to the media to help inform the population about the importance of the maintenance works to ensure the integrity of the pipeline to serve the countries for a long time.

Ms Burkett added that they would continue to build the relationship with the media and intensify such engagements for proper dissemination of information on such maintenance works.

Source: GNA

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Mr Claudio Descalzi, the Chief Executive Officer (CEO) of Eni, an Italian multinational energy company, has paid a courtesy call on President John Dramani Mahama in Accra. 

A statement issued by Eni, copied to the Ghana News Agency, said the two discussed oil production activities in the country. 

Mr Descaizi illustrated the achievements of the Offshore Cape Three Points project (OCTP), the biggest investment made by a private company in Ghana, completed ahead of schedule and under budget, with first oil in 2017 and first gas in 2018.  

The statement said gas from OCTP was entirely destined for Ghana’s domestic consumption, ensuring a safe and reliable energy source to meet internal needs, contributing to around 70 per cent of Ghana gas domestic production.  

It said additionally, Eni had also brought to the President’s attention some new short and medium-term exploration and development opportunities.  

The statement said the meeting also served as an opportunity to discuss Eni’s plans for economic diversification in Ghana.  

Eni has been present in Ghana since 2009.  

The company is the operator of the OCTP project with a 44.40 per cent share, in partnership with Vitol (35.60 per cent) and Ghana National Petroleum Corporation (20 per cent).  

Its portfolio of projects also includes initiatives in the areas of training, economic diversification, access to water and sanitation, and access to energy.  

Source: GNA 

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The government plans to undertake major review in the petroleum downstream to conform to modern trends, Mr John Abdulai Jinapor, the Minister of Energy and Green Transition, has announced.

The review would help define rules, inject operational efficiency, increase accountability, and ensure that the public was better served. 

“My predecessor attempted reviewing some portions of the petroleum sector. It was stuck in Parliament. So, this time around we are taking a holistic view of the entire petroleum downstream … and ensure that we serve the people of Ghana,” he said.

Mr Jinapor said this on Tuesday in Accra when he held separate meetings with executives of Chamber of Oil Marketing Companies, Tanker Owners Union, Tankers Drivers Association, and Ghana Chamber of Bulk Oil Distributors.

The meeting is a follow-up to an earlier consultation prior to the 2024 elections to gather inputs to formulate the manifesto of the National Democratic Congress. 

Mr Jinapor stated that a seven-member committee would be set up to engage with stakeholders and give advice on the best way forward to address the challenges in a more transparent manner.

He noted that the Government was reviewing the Gold for Oil programme, and that the Minister of Finance was working on the gold aspect and intended to set up a gold board. 

Revamping of the Tema Oil Refinery was integral part of the Government’s vision, he said, adding: “If we can get local entrepreneurs to lead the process it will help us a lot. It will be in line with our local content policy.” 

He urged the stakeholders to also focus their attention on opportunities in the renewable sector.

“The traditional fossil fuels would eventually be giving way to some level of renewable energy and so you must be ahead of the curve so that you can tap into that sector.” 

Dr Patrick Ofori, the Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors, said the Chamber welcomed the vision to “change the face” of the Tema Oil Refinery.

He said the Chamber was committed to the government’s idea on the green transition with some of the industrial players already promoting the use of ethanol and other renewables.

The Chamber, he hinted, would host the first downstream seminar on how the sector could practicalise the 24-hour economy. 

Dr Riverson Oppong, the Chief Executive Officer, Chamber of Oil Marketing Companies, said the Chamber worked with the National Petroleum Authority on a number of interventions.

These include the introduction to the price deregulation policy and formulate the legislation to curb illegal activities, such as smuggling and fuel adulteration.

The Chamber, he said, instituted the downstream safety week since 2017 to increase safety awareness in the sector.

As of 2024, it contributed more than $19 billion to taxes in the country and created almost 160,000 direct and indirect jobs.

However, the Chamber was experiencing operational, stakeholder and policy issues that needed urgent attention, Dr Oppong said.

“Sometimes there are inadequate products available in Takaradi and Kumasi, reason why, at the end of last year, we saw some fuel shortages in the middle belt…For the past one month, and even beyond, we have had constant disruption of the Integrated Customs Management System,” he said.

“And like I always say to our media friends, when petroleum prices are going up, we are operating a system where we just do a pass-through cost. Whatever cost we embed as an OMC company, we just pass it on to the retail pump price. So if all the system challenges go down, we believe price from our members’ side can be a thing that we can look at.”

Source: GNA

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The Public Interest Accountability Committee (PIAC) says Free Senior High School (SHS) programme continues to be the major recipient of funding from Ghana’s oil revenue.

The Committee’s 2024 semi-annual report showed that the government spent a substantial GH¢2.4 billion on the Free SHS programme during the first half of the year, allocated under the Physical Infrastructure and Service Delivery in Education and Health sector of the Annual Budget Funding Amount (ABFA).

The report highlighted that the government allocated a total of GH¢8 billion for its 2024 budget, with a strong emphasis on infrastructure development and education.

While the Free SHS programme received the largest allocation within the Physical Infrastructure and Service Delivery in Education sector, the Committee noted that no funds were disbursed to the health sector component of this priority area.

A significant portion of the budget, amounting to GH¢1.7 billion, was earmarked for crucial infrastructure projects, including the Accra-Tema Motorway and improvements to the country’s road network, categorized under Roads, Rail, and Other Critical Infrastructure.

The agricultural sector received GH¢747 million to support food production and fisheries development.

In a move towards greater transparency and accountability, the government allocated GH¢10 million to PIAC to continue its oversight of Ghana’s revenue management.

Source: GNA

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The African Centre for Energy Policy (ACEP) has expressed concern over the Bulk Oil Storage Company’s (BOST) shift in mandate and its call for privatization. 

ACEP noted that BOST, originally tasked with maintaining strategic petroleum reserves, had increasingly moved toward commercial operations, now competing with private sector companies. 

The Centre raised issued about the company’s continued receipt of GH¢600 million annually from margins while operating tax-free, in contrast to the taxed private sector businesses it competes with. 

This shift follows calls from the energy think tank for the privatization of BOST and its listing on the Ghana Stock Exchange to promote transparency and efficiency. 

ACEP pointed out that BOST’s control of 20 percent of the import market further underscored the company’s shift toward commercial operations rather than focusing on strategic petroleum reserves. 

It proposed an alternative strategy for securing strategic stockpiles, recommending regulations that would require Bulk Oil Distribution Companies to maintain minimum stock levels, thus spreading the responsibility. 

ACEP also suggested providing incentives to International Oil Traders (ITO) to store products in Ghana, thereby creating a significant buffer for national supply security. 

The think tank said that the changing refinery landscape raised questions about the necessity of BOST’s current model and its associated margins, especially as the private sector could potentially deliver similar services at lower costs. 

ACEP called for a comprehensive review of BOST’s operations to ensure a more efficient and effective approach to maintaining national energy security. 

Source: GNA 

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A new report from the Africa Centre for Energy Policy (ACEP) has revealed an increase in fuel-related levies and margins imposed by the Ghanaian government, leading to increased fuel prices for consumers.  

The report by the energy think tank highlighted that while the government collected over GH¢9.7 billion annually in petroleum taxes, a significant portion was earmarked for debt servicing, leaving limited resources for development.   

The report noted that a range of regulatory margins, including the BOST Margin, Primary Distribution Margin (PDM), Unified Petroleum Price Fund (UPPF), and the Cylinder Recirculation Model (CRM) margin, generated a substantial GH¢7.6 billion annually.  

These margins, paid by consumers, have witnessed a surge between 2019 and 2024, with increases ranging from 247 percent to 429 percent.   

The report criticised the PDM, which was levied regardless of whether the state-owned Bulk Oil Storage Company (BOST) is utilized for transportation, as “disingenuous” given that over half of petroleum products bypassed BOST altogether.  

Concerns were also raised in the report regarding the Price Stabilization and Recovery Levy (PSRL), with a portion used to subsidize premixed fuel while the remainder remained unaccounted for.  

The report further pointed out that BOST, initially tasked with strategic stockpiling, had ventured into the petroleum import market through the Gold for Oil programme, deviating from its core mandate.  

The report noted that the Fuel Marking Margin, intended to ensure fuel quality and revenue assurance, is also under scrutiny.   

The report said that the proliferation of the proprietary marking chemical in the market undermined the purpose of the levy.  

Finally, the report highlighted the substantial subsidy of nearly GH¢400 million annually for the Cylinder Recirculation Model (CRM), which aims to promote LPG usage.   

It noted that subsidy was levied on all LPG consumed, regardless of whether it was through the CRM or the conventional model.  

Source: GNA 

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President John Dramani Mahama has assured Independent Power Producers (IPPs) of the Government’s support towards generating the needed energy to boost the country’s electricity supply.

He bemoaned the poor governance of the Electricity Company of Ghana (ECG) and pledged to take the bull by the horns to reform the energy sector while ensuring the efficient running of the ECG.

“I mean, you can’t run an electricity utility and make 40 per cent commercial and technical losses and continue to think that you have a viable business,” he said.

“And so, if we do it more transparently, more fairly, more competitively, I’m sure that we’ll get an efficient partner to join us in terms of billing and metering so that we can eliminate the huge losses that ECG is making.”

He reiterated the key role IPPs played in the country’s energy sector, which complements government’s efforts in leveraging the capital required to generate the needed power for the country.

The President gave the assurance during a meeting with IPPs in Accra on Monday to discuss the challenges they faced in their operations and how to find solutions through teamwork.

“It was important that we expand the space for independent power producers, because the Government on its own cannot always leverage the capital to put in the generation that is required,” he said.

“And that’s how come many of you signed the PPAs (Power Purchasing Agreements) and set up the thermal plants that we have.”

That was to help increase generation as the Akosombo Hydro Dam alone could not continue to be the sole power provider for the country, forever, he said.

The time had, therefore, come for Ghanaians to complement hydro with thermal, which the Volta River Authority was responsible for.

“But mobilising capital early enough and being able to operationalise thermal plants was becoming a challenge for government and its state-owned power production companies,” President Mahama said.

That was where IPPs such as the Sunon Asogli Power started to get on board, which had since played a critical role in ensuring the nation’s economy got the needed power to continue to make progress.

“However, this has generated some debts, which had accumulated and become difficult to pay back,” he said.

The President noted that his previous administration introduced the Energy Sector Levy Act (ESLA) with the anticipation that within five years, Ghana would have been able to clear the legacy debt, looking at the revenues to be accrued by the sector.

However, with the change in government in 2017, the ESLA was not used for its intended purpose, President Mahama said, adding: “The revenues of ESLA were mismanaged. And so, what should have gone to pay down a lot of the debt was used for other purposes.”

He said Ghana was opened for business again and called for investment in the sector.

GNA

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