By: Dominic Hlordzi
An energy policy analyst at the Institute for Energy Security, IES, Prince Lumor, has called for the reintroduction of the Strategic Petroleum Stocks Levy to strengthen Ghana’s downstream petroleum sector and protect the country against future fuel supply disruptions.
According to Mr. Lumor, the levy would provide the financial resources needed to build and maintain strategic petroleum reserves capable of cushioning the country during global energy shocks, geopolitical tensions, pandemics and supply chain disruptions.
In a policy statement titled “Strategic Petroleum Stocks Levy: A Necessity for a Robust Downstream Petroleum Sector,” the analyst explained that BOST Energies was originally established to manage the country’s strategic petroleum stocks and ensure fuel availability during emergencies.
He noted that Ghana currently relies largely on operational fuel stocks without a dedicated strategic reserve buffer, leaving the country vulnerable whenever there are major disruptions in global petroleum supply.
The statement argues that reintroducing the levy would support investment in storage infrastructure, transportation systems and monitoring mechanisms needed to guarantee adequate fuel supply during emergencies.
It also proposes closer collaboration between Tema Oil Refinery and BOST Energies, where part of the levy could be used to purchase crude oil for refining and storage as part of the country’s strategic reserves.
The analyst compared Ghana’s current situation to several countries that maintain significant petroleum reserves to protect their economies from supply shocks.
According to the statement, the United States maintains strategic petroleum reserves with a storage capacity of about 714 million barrels, while China’s combined strategic and commercial reserves are estimated at about 1.4 billion barrels.
Germany is also reported to maintain approximately 170 million barrels in strategic reserves, enough to sustain the country for about 90 days in line with benchmarks set by the International Energy Agency.
In Africa, the statement said South Africa’s reserves can sustain demand for only about two weeks during a major disruption, while Nigeria’s reserves are estimated to cover approximately 30 days despite the country’s oil wealth.
The analyst warned that Ghana’s current petroleum reserves cannot sustain the country beyond six weeks in the event of a major supply disruption, posing a threat to national energy security.
He further argued that a dedicated strategic stocks levy could help stabilize local fuel prices during periods of rising international crude oil prices by allowing the government to release strategic reserves to supplement operational stocks.
In the statement the analyst added that building a stronger strategic petroleum reserve system would align Ghana with international energy security standards and potentially attract greater investment into the country’s energy sector.
He therefore urged the government to reintroduce the levy as part of long-term measures to strengthen Ghana’s energy resilience amid growing uncertainties in the global energy market.
