COPEC urges local refineries to pay for crude oil in cedis

The Chief Executive Officer of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has urged the government to ensure that local refineries pay for crude oil supplied to them in cedis, cautioning that dollar payments could put further pressure on Ghana’s foreign exchange market and weaken the local currency.

Duncan Amoah said allowing refineries to pay in cedis would reduce their need to compete with other businesses for scarce dollars, particularly when the refined petroleum products are sold on the domestic market in the local currency.

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Speaking in an interview on Channel One on Monday, October 12, 2026, he stated that the terms of the crude supply arrangement should support domestic refining while protecting the commercial interests of oil producers and the state.

Amoah welcomed the commercial arrangement under which upstream producer Tullow Oil supplies crude oil to local refineries, stressing that the deal should be structured to ensure that all parties benefit.

“That the crude is being sold on a commercial arrangement basis is a good thing so that the Jubilee Partners do not lose, Tullow does not lose, the state Ghana does not also lose the expected revenue,” he said.

According to him, the government should make the payment terms flexible enough to allow refineries to settle their crude purchases in the local currency instead of sourcing dollars from the foreign exchange market.

“I am happy that Mr. President has already instructed the Energy Minister, the Finance Minister to ensure that these refineries are given a flexible trade term such that they can pay for the crude in the local currency,” he added.

According to the COPEC CEO, requiring refineries to pay in dollars when they sell their products in cedis could increase demand for foreign exchange and place additional pressure on the cedi.

“Don’t forget, whatever they refine and sell, they sell to the Ghanaian market in cedi. And so if you ask them to pay dollar, you are simply asking them to come back to the same market that doesn’t have enough dollars for the other importation space to crowd them out and further put pressure on the Cedi causing depreciation,” he argued.

The call comes as Ghana seeks to expand its domestic refining capacity and reduce its reliance on imported petroleum products. Sentuo Oil Refinery received the first crude cargo under the supply arrangement earlier this year.

A cedi-based payment system could reduce the direct demand for dollars from local refineries, although its success would depend on the commercial terms agreed between the refineries, crude suppliers and other parties involved.

ANAS

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