Ghana: John Dramani Mahama explores the payment in cedis for crude delivered to local refineries.

Ghana is looking to review the payment terms for crude oil destined for its refineries. President John Dramani Mahama has tasked the Minister of Energy and Green Transition, John Abdulai Jinapor, with exploring the possibility of allowing these purchases to be settled in cedis.

According to information reported by Graphic Online, local refineries currently have to mobilize dollars to acquire crude oil, even when it is produced in Ghana. However, they sell a large portion of the fuels derived from this processing on the domestic market and receive their revenues in local currency.

This discrepancy between the currency used to purchase crude and that of sales exposes the refineries to exchange rate fluctuations. A depreciation of the cedi increases the amount needed to acquire the dollars required to pay for shipments and can raise refining costs.

The mechanism also contributes to increasing demand for foreign currency in the Ghanaian market. The government therefore wants to determine whether transactions involving local crude can be settled directly in cedis, while still maintaining a compensation consistent with the international value of oil.

Reducing Exchange Rate Risk for Refineries

The proposed reform would better align the revenues and expenditures of refining companies. A refinery selling its products in cedis would no longer be required to systematically convert its revenues into dollars before paying its crude oil suppliers.

This change could limit losses related to exchange rate fluctuations and improve the financial predictability of operations. However, it would not necessarily eliminate all references to the dollar, as the price of oil is generally determined on international markets.

The authorities still need to define the applicable conversion rate, settlement terms for producers, and the treatment of oil revenues typically received in foreign currency. The specific legal framework set to be amended has not yet been made public.

The presidential request comes as Ghana seeks to boost local processing of its hydrocarbons. In July 2026, the government allocated one million barrels of oil from the Jubilee field to local refineries to reduce crude exports and retain more value within the economy.

The Tema Oil Refinery notably received a shipment of one million barrels of Jubilee crude on July 15. This delivery is part of the revival of the public refinery and the strategy aimed at reducing the country’s dependence on fuel imports.

The government also intends to support private refineries. Minister John Jinapor has presented local oil processing as a central element of the country’s industrialization and energy security policy.

Payment in cedis would further this direction by facilitating access for national refineries to crude produced within the territory. It could also reduce part of the dollar demand generated by the oil sector.

However, the measure is still at the review stage. The Ministry of Energy will need to study its legal, monetary, and commercial implications before any potential amendments to the regulations are submitted to the government.