Ghana's Downstream Petroleum Sector:Challenges and Opportunities in a Transforming Industry

The Ghanaian downstream petroleum sector stands at a crucial crossroads, balancing growth and investment opportunities against regulatory, infrastructural, and economic challenges.

- Gilbert Da Costa

The recently concluded Downstream Dialogue 2025, organized by the Chamber of Oil Marketing Companies (COMAC), served as a critical platform for industry stakeholders to dissect the pressing issues shaping the future of the sector. With keynote addresses from government officials and industry leaders, the event provided insightful discussions on regulatory reforms, pricing mechanisms, financing constraints, and the imperative for energy transition.

An Industry Driving Economic Growth

Ghana's downstream petroleum sector is a key contributor to the country's economy, accounting for approximately 8.4% of GDP in 2023. The sector facilitates energy security and industrial development, ensuring the supply of over 4.5 million metric tons of petroleum products annually, with 14% of this volume exported to landlocked neighboring countries. The country boasts a robust infrastructure base, including over 1.9 million metric tons of storage capacity, more than 85,000 barrels per day in refining capacity, and over 5,000 retail outlets.

Despite these achievements, the sector faces numerous hurdles that threaten its sustainability and efficiency. Regulatory bottlenecks, credit opacity, pricing volatility, distribution inefficiencies, and infrastructure gaps continue to undermine optimal industry performance.

Regulatory and Policy Reforms: A Path Forward