COPEC urges local refineries to purchase crude oil in cedis

The Chamber of Petroleum Consumers (COPEC) is calling on the government and industry stakeholders to allow local refineries to purchase crude oil using the Ghanaian cedi instead of the US dollar. Executive Secretary Duncan Amoah argues that shifting away from dollar-denominated transactions for local refineries is essential to ease the persistent pressure on the nation's foreign exchange market. By transacting in the local currency, COPEC believes the government can provide a significant buffer for the cedi against international market volatility.

According to Duncan Amoah, the current requirement for refineries to pay in dollars forces these institutions to compete with other businesses for limited foreign exchange. This competition often leads to a spike in demand for dollars, which in turn devalues the cedi and increases the cost of imported goods across all sectors. Amoah pointed out that since refined petroleum products are sold to Ghanaian consumers in cedis, it is logical and economically sound for the raw material—crude oil—to be acquired using the same currency when sourced or processed within the country.

The proposal is seen as a strategic move to better integrate Ghana's refining sector into the national economy. COPEC emphasizes that allowing cedi payments would help stabilize fuel prices at the pump, as it would reduce the frequency of price adjustments driven solely by exchange rate fluctuations. This shift would also support the sustainability of local refineries, such as the Tema Oil Refinery (TOR) or newer private facilities, by lowering the operational hurdle of securing foreign currency for every transaction.

As Ghana continues to work toward enhancing its domestic refining capabilities, advocates like COPEC argue that currency policy must evolve to protect the local economy. Reducing the dependency on imported petroleum products through strengthened local refining remains a national priority. By aligning crude oil procurement with the domestic currency, the country could see more predictable energy costs and a more resilient financial environment, ultimately benefiting both the business community and ordinary consumers.