Chief Executive Officer of the National Petroleum Authority, Godwin Edudzi Tameklo, has underscored the critical role of Ghana’s downstream petroleum sector.
He described the downstream as a key driver of the national economy and warning against undermining strategic state institutions like Bulk Oil Storage and Transportation (BOST).
Speaking on recent developments in the fuel sector on the Keypoints, Mr. Tameklo noted that the downstream petroleum industry contributes significantly to Ghana’s GDP, making it one of the most important sectors in the economy.
“The downstream petroleum sector is the very engine of the entire economy.”
Citing recent data, he revealed that the downstream sector contributes about nine percent to Ghana’s GDP, surpassing even some traditionally dominant sectors.
“If you look at the data, about nine percent of GDP comes from downstream. That tells you how critical it is.”
He warned that disruptions in the sector, even for a short period, could have far-reaching consequences.
“An incident that has happened for barely two months has the potential to derail everything in the economy.”
Mr. Tameklo strongly defended the continued importance of the Bulk Oil Storage and Transportation Company (BOST), pushing back against calls to downplay or scrap its role.
According to him, BOST was established as a strategic response to national challenges in fuel supply and remains essential today.
“BOST remains a strategic intervention in the downstream sector. Anyone who discredits its relevance does not understand the current dynamics.”
He explained that past fuel crises, including shortages that led to long queues at fuel stations, highlighted the dangers of over-reliance on private sector control.
“There was a time when private players held the state to ransom. That became a national security concern.”
Recounting events around 2014–2015, Mr. Tameklo said fuel supply disruptions were worsened by financial challenges, including foreign exchange losses and subsidy-related debts.
“Before we realised, huge debts had accumulated in the name of forex differential losses and under-recoveries.”
He explained that BOST’s expanded role into trading was a deliberate policy response to reduce such vulnerabilities.
“The idea was to let BOST also buy products, so the state is not left at the mercy of private operators.”
Mr. Tameklo emphasised the importance of building and maintaining strategic petroleum reserves, drawing comparisons with global best practices.
“When the Iran crisis happened, countries released about 400 million barrels of crude into the system to stabilise prices. That is planning for the future.”
He lamented Ghana’s limited storage capacity, noting that insufficient investment in infrastructure continues to constrain the sector.
“We have not been able to significantly increase our storage facilities, and that is a major gap.”
He criticised the pressure on institutions like BOST to prioritise profit over strategic national interest, arguing that some investments must be made with future security in mind.
“The state does not always invest for immediate returns. Sometimes you invest for tomorrow.”
Mr. Tameklo added that over-reliance on private storage infrastructure poses risks, stressing the need for stronger state-led capacity.
“We cannot continue to depend on private players for critical storage. That is a responsibility of the state.”
He also traced the evolution of Ghana’s petroleum regulatory framework, including the establishment of the National Petroleum Authority in 2005, as part of efforts to address inefficiencies and financial risks in the sector.
“Every structure we have today was created to solve a problem—economic, political, or operational.”
By Christabel Success Treve
