COPEC Makes Fresh Demand Over Crude Oil Payments as Pressure Mounts on Ghana’s Cedi

The Chamber of Petroleum Consumers (COPEC) has called for local oil refineries in Ghana to be allowed to pay for crude oil purchases in cedis instead of US dollars, warning that dollar-denominated transactions could increase pressure on the foreign exchange market and contribute to the depreciation of the local currency.

The call comes amid efforts to supply crude oil from upstream producer Tullow Oil to domestic refineries as part of initiatives to strengthen local refining capacity and reduce Ghana’s dependence on imported petroleum products.

Sentuo Oil Refinery received the first crude oil cargo under the arrangement earlier this year.

COPEC Executive Secretary Duncan Amoah believes settling crude oil transactions in the local currency would be more consistent with the operations of domestic refineries, which sell their finished petroleum products on the Ghanaian market in cedis.

He stressed the need for commercial agreements that protect the interests of crude oil producers, the government and local refineries while ensuring that the arrangements do not create additional pressure on foreign exchange demand.

Amoah welcomed the commercial basis of the crude supply arrangement, noting that it was important to ensure that the Jubilee partners, Tullow Oil and the Ghanaian state received their respective financial benefits from the transactions.

However, he maintained that domestic refineries should be given the flexibility to settle their crude oil purchases in cedis, Ghana’s official currency for local transactions.

He also indicated that President John Dramani Mahama had directed the Ministers of Energy and Finance to explore flexible trading terms that would enable refineries to make payments in the local currency.

According to Amoah, requiring refineries to source dollars to purchase crude oil while earning cedis from the sale of refined products could increase competition for limited foreign exchange.

He warned that such a requirement could place additional pressure on businesses that depend on foreign currency to finance imports, potentially worsening demand for dollars and putting further pressure on the cedi.

Source: https://www.citinewsroom.com/2026/10/copec-pushes-for-cedi-payments-for-crude-oil-purchases-by-local-refineries/

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