Mahama Directs Review of Dollar Payments for Ghana's Crude Oil
Ghanaian President John Mahama has directed a review of dollar payments for crude oil sales to ease pressure on the local currency, cedi. This new policy mirrors one implemented by Nigeria in October last year, allowing domestic refineries to pay for Ghana's crude oil in cedis rather than US dollars.
The Petroleum Revenue Management Act and the Petroleum Holding Fund framework currently require payment for crude in foreign currency, following global industry practice. However, President Mahama instructed officials to rethink this requirement after being informed that it causes pressure on the cedi and adds cost when buying dollars on the market.
According to Energy Minister Dr. John Jinapor, the President's directive followed a discussion at his residence where he questioned how Tema Oil Refinery pays for crude deliveries in Ghana. The Finance Minister and Central Bank Governor agreed with the President that paying in cedis would ease foreign exchange pressures on the US dollar.
The instruction came after Tema Oil Refinery received one million barrels of Jubilee Medium Sweet crude aboard the MT Apache on August 1, alongside newly refurbished units. This policy shift aims to reduce transaction costs and stabilize domestic pump prices for petroleum products.