Demand for petroleum products has increased significantly from an average of seven to 41% in 2021.
The unprecedented surge in consumption is a result of various technology-based schemes and interventions being implemented by the downstream regulator to curb illicit fuel activities over the past few months.
Chief Executive Officer (CEO) of the National Petroleum Authority (NPA) Dr Mustapha Abdul-Hamid announced this yesterday at the opening of the 2022 Ghana International Petroleum Conference (GhIPCon) in Accra.
GH₵32.94bn sale of petroleum products
He said the petroleum downstream industry which had an annual sales value of about GH₵32.94 billion, according to 2021 estimates, contributed 7.2% of the country’s Gross Domestic Product (GDP).
The figure, Dr Abdul-Hamid added, represented a 41% increase in demand for fossil fuels as compared to 2020.
“This is an unprecedented surge in consumption of fossil fuels when the annual average over the years had been between five and seven per cent,” he said.
He explained that Africa’s petroleum downstream sector is entering a new era as the world looks to accelerate its transition away from fossil fuels mounting pressure on industries on the continent.
“We are all exposed to the global energy transition, as our countries depend on oil and gas revenues.
Dr Abdul-Hamid said the Authority is committed to reducing the emissions from the energy products consumed in Ghana.
He said the Authority was committed to reducing the emissions from the energy products consumed in Ghana.
He said the Government was determined to make the CRM policy a reality to help increase access to LPG.
“In the entire sub-region, it is only Ghana and Nigeria that still operates LPG filling stations. We ought to move with the time and to achieve LPG penetration of 50 per cent by 2030,” Abdul-Hamid said.
“We at the National Petroleum Authority are committed to reducing the emissions from the energy products we consume in Ghana, and this culminated in the reduction of Sulphur content in transport and industrial fuels from a maximum of 5,000 parts-per million (PPM) to a maximum of 50ppm.”
“Ghana is one of the few African countries that consumes low Sulphur fuels, with a roadmap for local refineries to comply,” he said.
Currently, about 70% of the country’s generation installed capacity of 5,321 megawatts MW is from a thermal plant that uses natural gas as its primary fuel.
The Ministry of Energy has set up the National Energy Transition Committee (NETC), with the aim of developing a national energy transition policy for the country.
The three-day Conference is being organised by the National Petroleum Authority (NPA) in collaboration with the Ghana Chamber of Bulk Distributors (CBOD), African Refiners and Distributors Association (ARDA) and under the auspices of the Ministry of Energy.
The Conference will highlight the petroleum downstream industry’s perspective and guidance on issues of government policy and regulatory framework.
It is on the theme: “Energy Transition in the African Petroleum Downstream Context: Prospects, Challenges and the way Forward”
It has attracted major players including CEOs, experts and decision-makers in the petroleum sector across the West Africa Sub Region.
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