- Ghana's petroleum sector demand up 30%
- BoG intervention stabilizes currency
- CBOD CEO seeks sustained gov't support
The Chief Executive Officer (CEO) of the Ghana Chamber of Bulk Oil Distributors (CBOD), Dr. Patrick Kwaku Ofori, has disclosed a significant 30% rise in the demand for petroleum products in the final quarter of 2024, despite ongoing economic challenges.
Speaking on Joy News’ PM Express, Business Edition, with host George Wiafe, Dr. Ofori outlined the progress made by the sector, emphasizing the remarkable growth in demand. “If you compare the first three quarters of this year with that of the previous year, you can clearly see that demand for petroleum products has gone up by 30% despite the challenges we face with forex availability to procure products,” Dr. Ofori said.
He attributed the increased demand to the resilience of the sector, noting that it came amid persistent difficulties, particularly in securing foreign exchange (forex) to import petroleum products.
Dr. Ofori also commended the Bank of Ghana (BoG) for its timely intervention, which he said helped stabilize the currency and enhanced confidence among international oil traders. “In the last quarter, we saw the intervention from the Bank of Ghana. They stepped in, in addition to the normal BDC auction, by providing additional forex through commercial banks for the sector,” he explained.
This intervention, according to Dr. Ofori, was crucial in maintaining the smooth flow of products despite the forex challenges. “It gave everybody within the supply chain the confidence that Ghana is a safer destination to send products. That ensured there was no shortage, even amidst forex challenges,” he emphasized.
Dr. Ofori further praised the Bank of Ghana’s proactive measures, particularly in October 2024, which helped safeguard the supply chain. “Credit to the Governor and his team for stepping in. When there’s a struggle for dollars, and international traders are uncertain whether they’ll get paid in USD, it can disrupt supply. The BoG’s support reassured our partners and kept the nation afloat,” he added.
Additionally, Dr. Ofori highlighted the pivotal role of Ghana’s Bulk Oil Distributors (BDCs), whose resilience and capacity were instrumental in sustaining the sector during difficult times. “The BDCs stepped in and carried the country through tough times,” he said. “This isn’t something new for them, but it shows their capacity to protect the space irrespective of government intervention.”
The CBOD CEO also stressed that government support should be focused on creating a conducive environment for business rather than direct intervention. “If the government intervenes, it should be to drive business and allow for the free flow of products without the need for state entities,” he remarked.
Despite the sector’s progress, Dr. Ofori acknowledged that policy inconsistencies remain a challenge. “There have been a bit of policy inconsistencies, which we’ll need to address going forward,” he stated.
Looking ahead, Dr. Ofori called for continued collaboration and support from the government and other stakeholders to ensure sustained growth and stability within the petroleum sector.
