Sentuo Oil Refinery is set to receive approximately one million barrels of crude oil from the Jubilee Field in a move aimed at strengthening Ghana’s local refining capacity, enhancing fuel security, and potentially reducing fuel prices for consumers.
The development was disclosed by the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, who described the decision as a strategic response to global fuel supply challenges and the rising cost of importing refined petroleum products.
According to Mr. Amoah, allocating locally produced crude oil to domestic refineries will help reduce Ghana’s dependence on imported fuel while ensuring that more value is retained within the national economy.
“Sentuo Refinery is indeed taking delivery of some one million barrels of crude from the Jubilee fields. This is one of the best decisions the government could make, especially considering the ongoing tensions in the Middle East,” he said.
He explained that with increasing insurance and shipping costs associated with importing refined petroleum products, it is more practical for Ghana to refine its crude locally rather than export it for processing and subsequently import finished products.
Mr. Amoah hailed the initiative as a major step toward improving the country’s fuel security and reducing the impact of fluctuations in the global energy market on Ghanaian consumers.
He further revealed that the Tema Oil Refinery (TOR) is also expected to receive a similar volume of crude oil by the first week of July, ensuring a steady supply of feedstock for local refining operations.
While welcoming the move, he called on the government to extend similar support to smaller modular refineries such as Platon and Akwaaba to encourage broader participation in the downstream petroleum sector.
“TOR recently received a cargo, so it is only fair that Sentuo receives the first parcel. What I know is that TOR will also receive a similar cargo by the first week of July, which means local refineries will continue to receive crude allocations,” he noted.
He stressed that supporting smaller refineries would help increase refining capacity and provide additional petroleum products needed by local industries.
Mr. Amoah also indicated that sustained crude allocations to local refineries could contribute to a gradual reduction in fuel prices by lowering exposure to high shipping and insurance costs, particularly amid concerns about disruptions to international supply routes.
“If this policy is sustained, it has the potential to gradually ease fuel prices because Ghana will be less affected by the expensive insurance premiums and supply constraints currently impacting the global fuel market,” he said.
He commended the Ministry of Energy for the initiative and expressed hope that the policy would continue throughout the year to shield consumers from rising fuel costs while strengthening Ghana’s energy security.
Source: citinews
