Why COPEC Wants Ghana’s Refineries to Stop Paying Dollars for Crude Oil

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

The call comes amid efforts to supply domestically produced crude oil to local refineries to boost domestic processing capacity and reduce Ghana’s dependence on imported petroleum products.

Sentuo Oil Refinery received the first crude oil cargo under the arrangement earlier in 2026.

COPEC Executive Secretary Duncan Amoah said settling crude oil purchases in cedis would better align refineries’ purchasing costs with their revenues, since the petroleum products they process are sold on the Ghanaian market in the local currency.

He stressed the importance of ensuring that the commercial arrangements benefit all parties involved, including upstream oil producers, the government and domestic refineries, without undermining the expected revenue of the state or the interests of crude suppliers.

Amoah argued that requiring local refineries to pay in dollars could place additional demand on Ghana’s limited foreign exchange resources, forcing refiners to compete with other businesses that need dollars to finance imports.

He noted that refineries generate revenue primarily in cedis from domestic sales, making it difficult for them to meet dollar-denominated crude purchase obligations without accessing the foreign exchange market.

According to the COPEC executive secretary, a cedi-based payment arrangement would help reduce the pressure on the currency by limiting the need for local refiners to source dollars for their crude oil purchases.

He also indicated that President John Dramani Mahama had directed the Ministers of Energy and Finance to explore flexible trading arrangements that would allow local refineries to pay for crude oil in the domestic currency.

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

TimelyGhanaNews feedback-opera-news-app@opera.com