The Minister of Energy and Green Transition, John Jinapor, has called for innovative reforms to enhance the performance of the downstream petroleum sector and stabilise the prices of fuel at the pumps.
He said the structural inefficiencies, regulatory and fiscal challenges, and market constraints within the downstream petroleum sector contributed to higher fuel prices at the pump at the expense of the consumer.
Speaking at the Chamber of Oil Marketing Companies (COMAC) Downstream Dialogue in Accra on Tuesday, Mr Jinapor stated that innovation could help address the challenges facing the downstream petroleum sector to drive down the cost of fuel for consumers.
The two-day event was on the theme: ‘Ghana’s Downstream Oil and Gas Sector: Challenges and Opportunities.’
It is designed to bring together key stakeholders in the downstream petroleum sector to discuss pertinent issues, share insights and develop actionable strategies for industry growth and sustainability.
The dialogue discussed topics such as “Policy Development and Regulatory Reforms,” “Downstream Petroleum Sector Local Content and Participation.”
Mr Jinapor, who was special guest of honour, said challenges facing the downstream petroleum sector also presented opportunities that players could take advantage of to help improve the sector.
“The increasing demand for petroleum products and dynamic nature of the petroleum downstream sector opens an avenue for infrastructure development and expansion, adoption of new and innovative technologies, increased Ghanaian content and Ghanaian participation, increased petroleum products supply,” he explained.
Furthermore, Mr Jinapor indicated that the need for reforms also present an opportunity for public-private partnerships to execute critical sector development projects and programmes.
The Minister also mentioned that his outfit would soon set up a Committee with representation with industry organisations to come out strategies to address the challenges facing the industry.
“The Committee will consider and deliberate on key interventions such as the promulgation of a downstream law, a review of the margins, taxes and levies in the Price Build Up (PBU) of petroleum products, diversification of petroleum products supply sources, implementation of a cost-reflective tariff framework, development of a low carbon fuel market scheme, modernization of the state-owned refinery through strategic partnership, to mention but a few,” the Minister stated.
He lauded COMAC for the dialogue, saying “This dialogue sets the tone for a detailed discussion of major issues in the sector with the
aim of churning out constructive solutions to enhance its operations.”
The Minister said the Ministry of Energy and Green Transition was committed to creating an enabling environment that fostered growth, collaboration, and ensured that the benefits of the country’s resources were equitably distributed.
The Chief Executive Officer (NPA), Mr Godwin Tamaklo, lauded COMAC programme, saying “It is a brilliant idea.”
He said the petroleum industry was evolving and growing, adding that the said the sector supplied 4.5 million tons of fuel to households and industry.
Mr Tamaklo said the NPA took the issue zonalisation seriously and had asked for the development for a memo on the issue.
The NPA CEO encouraged participants to actively participate in the programme and provide insights and suggestions to drive the industry.
The Chief Executive Officer of COMAC, Dr Riverson Oppong, said the oil and gas industry was the lifeblood of many world economy.
He said the industry contributed about 8.5 of the country’s Gross Domestic Product.
Dr Oppong again indicated that challenges such as regulatory bottlenecks policy inefficiencies were threatening the growth and survival of the downstream petroleum sector.
The CEO of COMAC further stated that the programme was to deliberate on challenges facing the sector and come out solution to address them.
He said energy transition and finance would be some of the major issues to be discussed at the programme.
Dr Oppong pledged COMAC’s commitment to collaborate with the government to promote the downstream petroleum sector.
The Board Chairman of COMAC, Gabriel Kumi, in his remarks said the programme was to bring experts and stakeholders to discuss measures to promote the growth of the downstream petroleum sector.
He said the dialogue would serve as launchpad to shape the discussion of the sector.
BY KINGSLEY ASARE
