…amid green transition in downstream sector
By Ernest Bako WUBONTO
The Minister of Energy and Green Transition, John Jinapor, has announced that government is prioritising measures to enhance downstream fuel security, stabilise the market and strengthen regulatory oversight to safeguard consumer interests.
He emphasised that these measures are part of a broader strategy to safeguard energy supplies, enhance the financial performance of downstream operators, promote sustainable practices and support the nation’s transition to a greener economy.
Speaking at the Downstream Dialogue 2025, a downstream petroleum sector summit held by the Chamber of Oil Marketing Companies (COMAC) under the theme ‘Ghana’s downstream oil and gas sector: challenges and opportunities’, the minister stressed the importance of securing the downstream fuel value-chain, which includes storage, distribution and retail operations.
“The flagbearer of our party, before the election, led a team to engage extensively with industry players, ensuring that all our sector policies align with industry recommendations. With this in mind, government is committed to providing citizens and businesses with reliable and affordable energy while taking decisive steps to integrate green transition goals into our energy policies,” he said.
In terms of price regulation to ensure market stability, Mr. Jinapor indicated that through extensive consultation with stakeholders, measures will be implemented to stabilise fuel prices and prevent market volatility.
Among the measures is closer monitoring of supply chains, including delays at the port, operations of tanker owners and drivers, financial institutions and other stakeholders, to address prevailing challenges impeding the sector’s efficiency.
The minister further mentioned a need for continuous investment in infrastructure improvements and strategic zonalisation to mitigate risks associated with supply disruptions.
Government’s focus on downstream fuel security and green transition comes at a time of increasing global energy demand and growing concerns about climate change. These initiatives are expected to strengthen the nation’s energy resilience and contribute to long-term economic and environmental benefits.
For his part, Chief Executive Officer-Chamber of Oil Marketing Companies, Dr. Riverson Oppong stressed that with oil being described as the lifeblood of modern economies – driving industries, powering transportation and shaping the geopolitical landscape, Ghana’s downstream oil and gas sector remains a fundamental pillar of economic development.
He highlighted that the sector’s contribution of 8.4 percent to gross domestic product (GDP) for 2023 underscores its importance in driving economic growth, creating jobs and ensuring energy security for our country.
Challenges
Despite its significant contributions to the economy, the industry faces pressing challenges which threaten its efficiency, growth and long-term sustainability, the CEO said, adding: “Our members continue to grapple with regulatory bottlenecks, policy inefficiencies, financing hurdles and evolving safety and environmental standards that demand urgent attention”.
The CEO emphasised a need for policy development and regulatory reforms aimed at enhancing efficiency and driving sustainable growth.
“Implementing the price deregulation, zonalisation, petroleum taxation and LPG cylinder recirculation model, among others, remains key to ensuring growth, sustainability and profitability of stakeholders in the industry,” he said.
“Our industry stands at a critical juncture. Oil marketers are confronted with a myriad of challenges – from regulatory bottlenecks, restrictive policies and operational hurdles to global price volatility, infrastructural gaps and financial constraints,” said COMAC’s Board Chairman, Gabriel Kumi.
Nonetheless, he opined that these challenges present tremendous opportunities to innovate, collaborate and establish strategic frameworks which transform the downstream sector.
