Petroleum is nervous system of the economy – NPA boss explains why fuel security is national security

The CEO of Ghana’s National Petroleum Authority, Godwin Edudzi Tamakloe, has emphasized fuel security as a crucial aspect of national security and the backbone of Ghana’s economy. Speaking on Joy News’ PM Express Business Edition, Mr Tamakloe stressed that petroleum products are at the heart of economic activity, making the management of the downstream sector a strategic responsibility.

He explained that unlike other services, consumers have limited alternatives when petroleum products are unavailable, as they cannot adjust for extended periods without light or fuel.

Mr Tamakloe highlighted that the NPA's approach to managing the downstream petroleum sector is centered on protecting the industry from both external shocks and domestic challenges. He noted that the need to build resilience into the sector became evident following fuel supply challenges experienced in Ghana around 2014 and 2015. Despite product availability, queues formed at fuel stations due to internal factors, creating an artificial shortage of products at various pumps.

To hedge the industry against potential disruptions, Mr Tamakloe pointed out that the petroleum sector is heavily influenced by developments outside Ghana. These external pressures, combined with factors such as the FOB (Free on Board) price, tax components, and the exchange rate, make petroleum pricing and supply management a complex task.

The CEO emphasized the importance of handling an industry that depends significantly on imports, as global developments can significantly impact the availability and pricing of petroleum products.