International Journal of Management and Business Studies

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 7 (3), pp. 441-448, March, 2017. © International Scholars Journals

Full Length Research Paper

Ghana’s downstream petroleum sector: An assessment of key supply chain challenges and prospects for growth

1Richard Amponsah (Dr.) and 2Francis Kelvin Opei

1Gimpa, P.O. Box ah 50, Achimota, Accra.

2Misyl Energy Company Limited, No. 49 Mensah Wood Street, East Legon Accra, Pmb 37 Legon, Accra.

*Corresponding author. E-mail: Tel: 233208412896

Accepted 13, June 2014


Ghana’s petroleum industry, though relatively young has been touted as having the potential to moving the country from a developing country to a developed one. The growth of the industry is highly dependent on ensuring that petroleum products produced at the downstream sector of the industry are distributed consistently and timely to consumers through an effective and efficient supply chain system. Though this is the ideal situation yearned for by stakeholders, the sector is plagued with challenges that negatively impacts on performance. This study, therefore explored supply chain challenges in the downstream petroleum sector in Ghana.  A mixed method approach was adopted to study the phenomenon. Data was collected from key players in the downstream petroleum sector through in-depth interviews and a questionnaire. The study discovered government interference in activities of actors, inability of government to pay under recoveries, government indebtedness to actors, inadequate infrastructure and inability of TOR to refining crude regularly as key challenges that impacted on an effective and efficient supply chain process. The study recommended, the Government of Ghana to inject capital for infrastructural development of the sector as well as wean off its interference in the activities of actors. In this case, key national players like BOST should be given autonomous status.

Key words: Assessment, downstream petroleum, supply chain, challenges and prospects, Ghana.