COPEC Calls for Energy Policy Overhaul to Shield Ghana from Global Oil Shocks

The Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has called for an urgent overhaul of Ghana’s energy policy, warning that the country’s heavy dependence on imported refined petroleum products continues to expose the economy to global oil market volatility.

Mr. Amoah’s remarks come amid growing geopolitical tensions in the Middle East, particularly the escalating conflict between Israel and Iran. These developments are already pushing global crude oil prices upward, raising serious concerns about the stability of energy costs in import-reliant nations like Ghana.

“There is a lot of geopolitical tension. We cannot continue to be price seekers; we cannot continue to be global observers,” Mr. Amoah said”

He further said “we cannot allow international oil marketing companies to take our hydrocarbon resources, ship everything back to Europe for refining, and then sell it back to us at $400 per cargo. That model is broken.”

According to COPEC, Ghana’s current energy policy fails to prioritize domestic refining and self-reliance, leaving the nation at the mercy of external supply shocks and pricing dynamics. 

However, Mr. Amoah emphasized the need for a shift in strategy to ensure that Ghana maximizes the value of its own natural resources, from extraction to end-use.

“Our energy policy must be redefined to reflect our national interest and economic resilience. Without local refining capacity and a robust value chain, any disruption in the global market hits us hard,” he said.

Ghana’s sole oil refinery, the Tema Oil Refinery (TOR), has faced years of operational challenges, including outdated equipment, financial mismanagement, and intermittent shutdowns. 

Despite being strategically positioned to process crude locally, TOR remains underutilized, forcing the country to rely on imported refined fuel which undermines the efficiency of TOR.

To address these issues, Mr. Amoah urged the Minister of Energy, John Jinapor, to take decisive action. “If anyone can fix the situation, it is him. We urge him to re-strategize and craft a sustainable energy policy that gives Ghana more control over its petroleum sector,” the Executive Director said.

He further argued that a localized energy policy should include incentives for private sector investment in refining, transparent governance of national oil assets, and a long-term roadmap to integrate renewables and reduce fossil fuel dependency. 

“Anytime prices go up globally, our economy takes the hit because we have no buffer. A new energy policy must insulate us from this recurring vulnerability,” Mr. added.

Mr. Amoah’s comments follow a recent directive by President John Dramani Mahama, tasking the Ministries of Finance and Energy to closely monitor the Middle East conflict and assess its implications for Ghana’s economy and fuel supply chain.

COPEC believes that an updated energy policy must also address regulatory inefficiencies and introduce transparent pricing mechanisms that protect consumers while ensuring fairness for distributors and marketers. “It’s time for a bold vision, one where Ghana is not just an observer but a serious player in the global petroleum landscape,” he emphasized.

In a broader context, Mr. Amoah noted that other oil-producing nations have taken significant steps to localize value addition within the energy sector. Countries like Nigeria and Angola have launched new refining projects aimed at reducing import dependence and strengthening economic resilience.

“If we do not act now, we will continue to feel every ripple in the global oil market,” he warned.

He said “expanding local refining capacity is crucial to lower fuel costs and ensure energy security”

As global uncertainties persist, COPEC maintains that reforming Ghana’s energy policy is no longer optional, it is essential to safeguarding national economic stability, creating jobs, and unlocking long-term growth.

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