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Delays in alternative petroleum discharge facility adding up to GH¢0.60 per litre in costs – CEMSE

The Centre for Media, Society and Economic Studies (CEMSE) says delays in developing alternative facilities for discharging petroleum products are contributing to higher costs in Ghana's downstream petroleum sector, with demurrage charges estimated to add between GH¢0.47 and GH¢0.60 to the cost of each litre of fuel. In a statement issued on Thursday, November 5, 2026, the think tank called for…

Delays in alternative petroleum discharge facility adding up to GH¢0.60 per litre in costs – CEMSE

The Centre for Media, Society and Economic Studies (CEMSE) has stated that delays in constructing alternative venues for discharging petroleum products are driving up the cost of fuel in Ghana by between GH¢0.47 and GH¢0.60 per litre. In a report released on November 5, 2026, the think tank urged for immediate investment in alternative petroleum discharge infrastructure to avoid congestion, delays and additional costs.

The organization reported a sharp increase in demurrage costs, jumping from an estimated US$35 million annually in 2024 to an estimated US$61.6 million in 2025. As of the report's date, Ghana had incurred around US$46.73 million in demurrage costs for 2026 alone. This additional burden amounts to 2.63% to 3.35% of the retail pump price, according to CEMSE.

CEMSE emphasized that reducing discharge delays through enhanced infrastructure and better operational efficiency could save petroleum users up to GH¢0.47 per litre. The organization pointed out that Ghana's heavy reliance on the major outlet at Tema, which handles about 75% of discharges, leaves the sector vulnerable to supply-chain disruptions and operational inefficiencies.

The absence of alternative mooring systems increases the risk of vessel blockages, long waits, and prolonged discharging times, which could disrupt timely fuel supplies.

The think tank also noted the rapid growth in petroleum imports over the past decade, with product volumes rising from 3,528,583 metric tonnes in 2015 to 6,089,046 metric tonnes in 2025 – a 73% increase. Simultaneously, the number of Bulk Oil Distribution and Export Companies (BIDECs) expanded from 37 in 2015 to 53 in 2026, a 43% rise. However, this growth in product volumes and operators has outpaced the development of mooring infrastructure, leaving the system strained.

CEMSE has also called for a review of the exclusive deal with a South African company, granted in 2015, which grants it exclusive rights to operate without competition for 15 years. This exclusive arrangement has limited opportunities for competing infrastructure investments in Ghana. The organization urged the government to review the regulatory and institutional barriers hindering the development of alternative facilities, establish a clear framework for private-sector investment, and outline specific priorities, timelines, and oversight for such projects.

Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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