The Chairman of Parliament’s Select Committee on Energy, Emmanuel Kwasi Bedzrah, has signalled that the committee will review the foreign-currency payment arrangement for locally sourced crude oil when Parliament resumes in October.
The review follows concerns raised by Sentuo Oil Refinery over the impact of the current payment system on domestic refining operations, particularly the requirement that local refineries purchase crude in US dollars while selling refined petroleum products on the domestic market in Ghana cedis.
Committee Visits Sentuo Refinery
Bedzrah made the remarks during a visit by members of the committee to Sentuo Oil Refinery in Tema on Tuesday, September 22, 2026, to assess its operations and contribution to Ghana’s downstream petroleum sector. Committee members toured the facility to discuss challenges with management and examine its role in the country’s refining ambitions.
At the centre of the discussions was a structural currency mismatch: local refineries purchase crude in foreign currency but sell refined petroleum products in Ghana cedis. The committee acknowledged concerns about the implications of this arrangement for sustainable refinery operations.
Legislative Review Planned
Bedzrah said the proposed review would be considered alongside changes to the National Petroleum Authority legislation and the Petroleum Revenue Management legislation, including the treatment of locally produced petroleum products sold on the domestic market.
“The Committee will look at the issue when Parliament resumes in October, particularly within the context of the proposed changes to the petroleum-sector laws,” Bedzrah said.
The review could become part of a wider question about whether Ghana’s regulatory and fiscal framework is adequately aligned with its objective of processing more crude domestically.
Sentuo Calls for Cedi-Based Pricing
Sentuo Group Executive Chairman and President Xu Ningquan questioned the rationale for requiring dollar payments for crude used to produce petroleum products for Ghana’s domestic market. He said the company is currently producing 40,000 barrels per day and plans to add another 60,000 barrels to scale up its capacity to 100,000 barrels.
According to management of Sentuo, although the company pays for the domestic product in cedis, the original price is normally pegged in dollars, requiring the company to convert cedis into dollars at usually high rates to pay for the product.
Xu called on the government to intervene and impress upon the Ghana National Petroleum Corporation to sell local crude to local refineries. He argued that policies should better support local value addition and enable refineries to sustain their operations over the long term.
Ranking Member Urges Balanced Framework
Ranking Member George Kwame Aboagye called for a workable framework that supports domestic refineries while protecting consumers and the wider economy. He urged the government to examine the operational challenges facing local processors and consider appropriate support measures to prevent them from operating at a loss.
Presidential Directive and Regional Precedent
The currency discussion follows an earlier government initiative to reconsider crude payment arrangements. In August, Minister for Energy and Green Transition John Jinapor said President John Dramani Mahama had directed a review of whether Ghanaian crude supplied to Tema Oil Refinery could be paid for in cedis.
President Mahama’s directive, as part of the government’s broader Reset Agenda, would allow local refineries to pay for domestically supplied crude in Ghana cedis rather than US dollars, easing pressure on the local currency, reducing the refinery’s demand for foreign exchange, and potentially lowering transaction costs.
The policy is modelled after Nigeria, which began naira-for-crude sales in October 2024, allowing domestic refineries such as Dangote Refinery to purchase crude in local currency.
Currently, TOR and Sentuo Refineries must obtain US dollars to pay for domestically produced crude, as mandated by the Petroleum Revenue Management Act, 2011 (Act 815). The Petroleum Holding Fund and the Petroleum Revenue Management Act require payment for crude — including Ghana’s own Jubilee Medium Sweet — in foreign currency, in line with the industry’s global practice of pricing oil in dollars.
Strategic Value of Local Refining
The debate carries significant strategic weight for Ghana. International crude prices, freight costs and exchange-rate movements can all affect the domestic cost of petroleum products. Increasing domestic processing does not eliminate those exposures, but it can create greater control over part of the supply chain.
A functioning domestic refining ecosystem can also support storage, transportation, engineering services, maintenance, logistics and other downstream businesses. President Mahama’s June commissioning of the second phase of Sentuo’s expansion, following the delivery of Jubilee crude for processing, has further strengthened the government’s emphasis on domestic refining.
Background: Emmanuel Kwasi Bedzrah
Emmanuel Kwasi Bedzrah is the Member of Parliament for Ho West Constituency in the Volta Region, representing the National Democratic Congress. He has been re-elected since his first election in the 2012 parliamentary election and is currently serving his fifth term. Born on May 28, 1967, Bedzrah holds a Master’s degree in Development Management and has served on various parliamentary committees, including the Government Assurance Committee and the ECOWAS Parliament.
The committee’s planned October review will provide an opportunity to examine how crude payment arrangements can be aligned with the needs of local refineries and the wider economy. At stake is Ghana’s ambition to turn more of its own crude into fuel at home, sustain industrial employment and build a petroleum sector whose growth delivers lasting value for businesses and consumers.
