The Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Dr Patrick Kwaku Ofori, has cautioned government against allowing Ghana’s downstream petroleum sector to evolve into a monopolistic market, warning that such a development could leave the country vulnerable to supply disruptions and price manipulation.
According to him, even as government pushes to revive the Tema Oil Refinery (TOR) and expand domestic refining capacity, alongside Sentuo Oil Refinery, Ghana must preserve a competitive market structure that guarantees multiple supply sources.
Speaking in an interview on the Citi Breakfast Show hosted by Bernard Koku Avle, which was monitored by The Chronicle, Dr. Ofori argued that the country should avoid a situation where a single refinery or supplier could effectively hold the nation “to ransom” during periods of market instability.
“If we are able to operationalise the full capacity, we are looking at about 50 per cent of our domestic fuel consumption being produced locally,” he noted.
However, he stressed that increasing local refining alone should not come at the expense of supply diversity.
“What is also critical is to have diversified supply sources so that any group of people cannot decide to take the country by ransom. When anything happens to a refinery, there must be an alternative source of products coming in.
“Otherwise, you end up importing emergency cargoes at huge premiums, which ultimately become detrimental to consumers,” he said.
Drawing lessons from neighbouring Nigeria, Dr. Ofori cited recent developments involving the Dangote Refinery, where changes in payment arrangements reportedly altered market dynamics.
He observed that when the refinery announced it would only accept US dollar payments instead of the Nigerian naira, the move immediately affected the foreign exchange market and highlighted the risks associated with excessive market concentration.
According to him, the episode demonstrated why regulators must avoid creating monopolistic conditions in the downstream petroleum industry.
He said Ghana’s regulatory and policy framework should ensure that local refineries prioritise domestic consumers before pursuing export opportunities, particularly during periods of global supply disruptions or elevated international prices.
Dr. Ofori, therefore, urged policymakers to institutionalise these protections rather than relying solely on goodwill from refinery operators or crude suppliers.
“We should move the conversation beyond goodwill and establish policy frameworks that protect every stakeholder in the downstream sector,” he said.
The CBOD chief, nevertheless, welcomed government’s efforts to restore TOR’s operations, describing the refinery as a strategic national asset that should work collaboratively with bulk oil distributors rather than replace them.
He explained that Bulk Distribution Companies (BDCs) provide financing, crude procurement and product off-take arrangements that are essential to the refinery’s commercial viability.
According to him, BDCs can mobilise capital, secure crude oil supplies and guarantee product purchases, thereby strengthening TOR’s cash flow and operational sustainability.
He added that collaboration between TOR, Sentuo and BDCs would strengthen Ghana’s energy security by ensuring adequate fuel availability while maintaining healthy competition within the downstream petroleum market.
Dr. Ofori also welcomed government’s intervention in facilitating crude oil supplies to local refineries, saying international crude suppliers had responded positively because the arrangements were conducted at prevailing international market prices.
He noted that early engagement with suppliers had enabled them to plan vessel schedules efficiently, reducing logistical challenges while supporting Ghana’s local refining ambitions.
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