New Deal: Ghana Considers Dangote Refinery To Ditch Costly European Imports

New Deal: Ghana Considers Dangote Refinery To Ditch Costly European Imports

The Ghana National Petroleum Authority (NPA) has announced its intention to explore sourcing petroleum products from the newly operational Dangote Petroleum Refinery in Nigeria. This move aims to reduce the country’s dependence on more expensive imports from Europe.…..CONTINUE READING 

NPA Chairman Mustapha Abdul-Hamid made this revelation on Monday during the OTL Africa Downstream Oil Conference held in Lagos.

The Dangote Refinery commenced operations on September 3, boasting a production capacity of 650,000 barrels per day (bpd) and began its initial phase in January with the production of diesel and aviation fuel.

Abdul-Hamid explained that once the refinery reaches full capacity, Ghana could significantly decrease its monthly import bill of $400 million for European petroleum products. “If the refinery operates at 650,000 bpd, it’s unlikely that Nigeria alone can consume that volume. Therefore, instead of importing from Rotterdam, it would be more efficient for us to source from Nigeria, which should help lower our prices,” he stated.

He also mentioned that importing from Nigeria would reduce freight costs, potentially leading to lower prices for other goods and services in Ghana. Furthermore, Abdul-Hamid suggested that a common African currency could diminish reliance on the dollar, helping stabilize regional trade and currency demands.

Previously, Ghana’s Association of Oil Marketing Companies (AOMCs) had anticipated a slight decrease in petrol and diesel prices by mid-September, contingent on the Ghanaian cedi maintaining its strength against the dollar.