Nigeria Ghana to Source Fuel from Dangote Refinery to Cut Costs

Ghana plans to import petroleum products from the Dangote Refinery in Nigeria to lower fuel prices. The move aims to reduce reliance on costly European imports and enhance regional trade. The refinery, which can process 650,000 barrels per day, is expected to operate at full capacity by year-end.

Ghana is set to begin importing petroleum products from the Dangote Refinery in Nigeria as part of a strategy to reduce fuel prices, announced by the Ghana National Petroleum Authority (NPA). Mustapha Abdul-Hamid, chairman of the NPA, revealed this plan during the OTL Africa Downstream Oil Conference in Lagos.

The Dangote Refinery, which commenced operations in January 2024, has a refining capacity of 650,000 barrels per day (bpd) and is expected to operate at full capacity by the end of the year. Abdul-Hamid indicated that sourcing fuel from this refinery would help Ghana cut its reliance on higher-priced imports from Europe, which currently cost the country around $400 million monthly.

By switching to Nigerian products, Ghana aims to mitigate freight costs associated with European imports, potentially leading to lower prices for consumers. The NPA chairman noted that if the refinery operates at full capacity, it will not only serve Nigeria but also meet the needs of neighboring countries, including Ghana.

Additionally, the Association of Oil Marketing Companies in Ghana has projected a slight decline in fuel prices, contingent upon the stability of the Ghanaian cedi against the U.S. dollar. This collaboration reflects a broader initiative to enhance trade relations within Africa, with discussions ongoing about establishing a common currency to simplify transactions and reduce dependency on the dollar. The Dangote Refinery, owned by Aliko Dangote, is expected to play a significant role in this economic partnership.