Ghana’s government is taking steps to tackle the fuel crisis, but protests are on the rise at the high price of living.
Ghanaian Energy Minister Matthew Opoku Prempeh met the Tanker Owners’ Union this week. The managing director of the Bulk Oil Storage and Transportation (BOST) was also present.
Prempeh and the officials talked about the proposed construction of a petroleum products pipeline. This would run from Accra to Kumasi, around 200 km northwest of the Ghanaian capital.
The energy minister described the pipeline plan as “all important”. He asked them to work with BOST on design plans for the project. The pipeline is aligned with the aim of transporting fuel in an efficient and environmentally friendly manner.
The minister went on to say they aimed for the pipeline to grow and advance Ghana’s downstream sector.
TOR talks
In the nearer term, new talks have taken place on Tema Oil Refinery’s (TOR) future. A statement from the refinery on June 23 said the government had approved a plan to lease the plant to privately owned Decimal Capital.
Such a plan would “boost the local supply of refined oil products and help stabilise the Ghana cedi”, it said. A lease agreement should be concluded by late July.
Kenya’s Decimal Capital would provide funding for a first phase, bringing the crude distillation unit (CDU) back online. It would reach 45,000 barrels per day of processing within a few months, TOR said.
The refinery could provide around one third of Ghana’s diesel needs, and all of its aviation kerosene and fuel oil demand.
Decimal Capital has not yet responded to a request for comment on the proposal.
Local thinktank, the Institute for Energy Security (IES), called on Ghanaian President Nana Akufo-Addo to intervene at TOR to save the plant. The facility has debts of more than 400 million cedi ($50mn) and “sits idle, rusting away”.
A statement in mid June from IES described Prempeh as “clueless”. The minister has ignored the possibility of reviving TOR and focused instead on the construction of another refinery, it said.
IES said local fuel prices had quadrupled in the last six years.
Price protests
The government is under mounting pressure to tackle inflation on its citizens. The Arise Ghana movement has launched a two-day protest, on June 28 and 29.
Garda, the security company, reported the protests had intended to end at the presidential palace, Jubilee House. The authorities asked the protest to shift to Independence Square instead, citing terrorism and safety concerns. Garda also warned of the potential for “heavy-handed tactics” from the police.
The Ghana police stated its officers had used tear gas and water cannons. Police said they had taken action in order to ensure the protest complied with the approved route.
See a leader of Ghana police slapping Arise Ghana demonstrator.
Sia #AriseGhanaDemo pic.twitter.com/gnvf5kOKWk— KOJO DYNAMIC 𓃵 (@AnnanPerry) June 29, 2022
Reports on social media showed clashes and the use of tear gas. Police have reported 29 arrests today and threatened to purse the leaders of Arise Ghana.
Opposition party the National Democratic Congress (NDC) appeared to give some support to the protests.