Parliament to Review Dollar Payment for Locally Produced Crude

The Ghanaian Parliament's Select Committee on Energy is set to review the requirement for local oil refineries to pay for crude oil in US dollars. The current arrangement, which was put into place due to concerns about foreign exchange pressures, has been criticized by refinery operators and even the Presidency.

According to Emmanuel Kwasi Bedzrah, Chairman of the committee, the review will involve assessing whether the current payment system is suitable for a domestic refining industry that largely sells its petroleum products in Ghana cedis. The committee plans to engage with the National Petroleum Authority (NPA) and other stakeholders when Parliament resumes in October.

The review comes amid broader discussions about how Ghana can maximize the value of its crude resources while strengthening the domestic refining industry. Sentuo Oil Refinery has previously raised concerns about the foreign exchange implications of purchasing locally produced crude in US dollars, as they process the crude domestically and sell most of their finished products in cedis.

The committee will consider the NPA's position alongside concerns raised by refinery operators before deciding on any possible parliamentary action. President John Dramani Mahama had previously directed the Minister of Energy and Green Transition to review the existing arrangement and explore whether Tema Oil Refinery (TOR) and Sentuo could be allowed to pay for locally produced crude in Ghana cedis.