The Ghana National Petroleum Authority (NPA) has announced plans to procure petroleum products from the Dangote Petroleum Refinery once it reaches full operational capacity. This statement was made by NPA Chairman Mustapha Abdul-Hamid during the OTL Africa Downstream Oil Conference held in Lagos on Monday.
The Dangote Refinery, which began refining crude oil on September 3, has a remarkable production capacity of 650,000 barrels per day (bpd). Although it started operations in January with a focus on diesel and aviation fuel, the facility is expected to operate near full capacity by the end of this year.
Abdul-Hamid highlighted that sourcing petroleum products from Dangote’s facility could alleviate Ghana’s reliance on costly imports from Europe, which currently amount to approximately $400 million monthly. “If the refinery reaches its 650,000 bpd capacity, all that volume cannot be consumed by Nigeria alone. Instead of importing as we do now from Rotterdam, it would be far more efficient to import from Nigeria,” Abdul-Hamid stated. He believes that this shift will not only enhance supply reliability but also significantly reduce prices for consumers.
The potential benefits of purchasing fuel from the Dangote Refinery extend beyond just petroleum products. Abdul-Hamid pointed out that by importing from a nearby country rather than Europe, Ghana could effectively lower the costs of various goods and services by eliminating the hefty freight charges associated with transcontinental shipping.
In addition to discussing the benefits of sourcing from Dangote, Abdul-Hamid touched on the broader implications for regional trade. He suggested that African nations should consider adopting a common currency to reduce the continent’s dependency on the U.S. dollar, which could further stabilize economies and encourage intra-African trade.
The announcement comes at a time when the Association of Oil Marketing Companies (AOMCs) in Ghana projected a modest decrease in petrol and diesel prices starting September 16, depending on the stability of the Ghanaian cedi against the dollar. This optimism is fueled by the potential for enhanced local supply chains and reduced import costs, which could ultimately benefit consumers.
Aliko Dangote, the owner of the refinery and Africa’s richest man, has made significant investments to ensure that the facility not only meets Nigeria’s demand but can also supply neighbouring countries like Ghana.