Ghana’s energy sector is undergoing a marked shift as government reforms begin to translate into lower fuel costs, revived domestic production at the Tema oil refinery and new investments in clean strategy, according to the Minister of Energy and Green Transition.
Speaking during a working visit by the vice president, H.E Jane Naana Opoku Agyemang to the Ministry, Dr.John Jinapor, outlined a series of policy decisions already approved by Cabinet and laid before Parliament, including measures that have reduced gas prices from US$3.10 to US$2.50 and are projected to increase gas consumption by 70 million standard cubic feet per day. The reforms are also expected to support higher crude oil output.
He further announced the signing of a US$1.5 billion agreement with Sankofa Partners which will enhance gas supply, reduce prices and expand production capacity. According to the Minister, these interventions mark a decisive shift in strengthening Ghana’s energy security.
Dr. Jinapor said the benefits of the reforms are already reaching consumers, citing sharp declines in fuel prices as evidence. He noted that fuel, which sold for as high as GH¢23 per litre under the previous administration, is now retailing at about GH¢9 per litre under the government of President John Dramani Mahama.
He emphasised that the true test of energy sector reforms lies in their impact on household costs, stressing that “the ordinary Ghanaian wants to feel it in the pocket.”
The Minister added that strengthened gas supply, rising crude oil output and tighter fiscal management are collectively placing the energy sector on a more stable and sustainable footing.
The Minister said reforms at Ghana Cylinder Manufacturing Company are aimed at expanding LPG use to curb reliance on charcoal and wood fuels, noting that the company refurbished 57,000 cylinders in 2024, up from 6,500 earlier in the year. He added that the Ministry has secured US$8.5 billion to modernise the facility into a full-scale cylinder manufacturing hub, supported by an off-take agreement with GOIL to guarantee market demand, with the Vice President expected to commission the upgraded plant before year-end.
In line with Ghana’s green transition agenda, the Minister announced solar-powered irrigation pilots in northern riverine communities, nationwide solar streetlights, and solar-powered EV charging stations at selected transport hubs to support dry-season farming, ease grid pressure, and promote clean transportation in a country hosting about 17,000 electric vehicles, the highest in Africa.
The Vice President Dr. Jane Naana Opoku Agyemang on her part, urged the Ministry of Energy and Green Transition to focus on discipline and long-term planning, warning that policies must deliver real benefits for consumers. She mentioned that lasting solutions require careful planning, reviewing strategies when needed, and making decisions that produce results, noting that recent improvements in debt management and supplier confidence are starting to benefit the economy.