Recent key structural reforms at the country’s main petroleum discharge point are expected to tackle longstanding inefficiencies and reduce demurrage costs, a move expected to bring stability to fuel supply and ease pump prices.
The country’s single-point mooring (SPM) facility, which handles around 80 percent of national fuel imports, has historically been plagued by congestion – leading to costly vessel delays. In the year’s first-half alone, bulk oil distribution companies (BDCs) incurred more than US$44million demurrage charges. These costs were passed on to consumers, increasing fuel prices by an estimated GH¢0.47 to GH¢0.60 per litre.
A new directive from the presidency has introduced a transparent, rules-based system for allocating laycan and scheduling vessel discharges, replacing the previous discretionary system that often created bottlenecks and disputes. Under the new framework, changes to vessel schedules must now be approved by the Cabinet sub-committee on energy security – eliminating unilateral decisions by regulators or ministry officials.
In comparison, Kenya’s total demurrage costs for 2024 stood at less than US$1million, highlighting the problem’s scale in Ghana.
“Companies that comply with the laid-down procedures are no longer penalised,” said Dr. Patrick Kweku Ofori, Chief Executive Officer-Ghana Chamber of Bulk Oil Distributors (CBOD), in an exclusive interview with the B&FT. “And for consumers, this means fewer delays and more stable prices.”
As part of the reform agenda, government has also broken the longstanding monopoly over the SPM facility, allowing for the construction of a second moratorium unit to handle growing demand. Traffic through the existing discharge point has more than quintupled in recent months, putting pressure on capacity and posing risks to fuel security.
“It no longer makes sense to tie national security to a single operator,” Dr. Ofori said, adding that expanding discharge infrastructure is critical to meeting current and future import volumes.
The changes also align with Ghana’s goal to establish itself as a petroleum logistics and trading hub for the West African sub-region. Fuel shipments to neighbouring Sahelian countries are increasing, with both Tema and Takoradi ports becoming key export corridors.
To support this regional ambition, government has mandated 24-hour operations at fuel terminals. Previously, discharge operations would pause after 2 p.m. – requiring BDCs to pay overtime allowances to depot and regulatory staff working after hours. Under the new 24-hour economy policy, these costs will be absorbed by the state.
“The discharge window is shrinking from 72 hours to 48 hours. This means improved vessel turnaround, reduced costs and less strain on supply chains,” Dr. Ofori noted.
Meanwhile, foreign exchange access – another major challenge for fuel importers – is also stabilising. CBOD expects the Bank of Ghana to meet at least 95 percent of BDCs’ FX requirements through commercial banks by mid-August, thanks to improved reserves and the ongoing gold purchase programme.
“We’re confident we’ll see full coverage of FX needs soon. The first quarter’s chaos has forced systemic improvements we’ve needed for years,” said Dr. Ofori.
CBOD is also urging government and private investors to expand fuel storage infrastructure, particularly in Takoradi and the Western corridor. This move would support the state’s fuel zonalisation policy and ensure greater supply security across the country.
“Building out strategic storage capacity is the next step to consolidate these gains,” Dr. Ofori said.
