Ghana Fuel Export Curb: Burkina Faso, Mali

Ghana has curtailed diesel and petrol exports to Burkina Faso and Mali amid tightening of global fuel supplies and growing domestic demand for petroleum products. BOST Energies, the Ghana-based state corporation, move illustrates the reliance of the landlocked Sahelian economies on the coastal West African economies for the import of fuels.

According to BOST managing director Afetsi Awoonor, the company started reducing exports in August to focus on domestic consumption of fuels. He noted that although fuel is still available, it is more expensive, and growing domestic demand puts further pressure on supplies.

How Much Fuel Has Ghana Withdrawn from Export?

The shortage has already impacted orders placed by Burkina Faso and Mali.

For example, 80,000 tonnes of gasoline for July and August were ordered by Burkina Faso, but BOST provided only 40,000 tonnes. In the same period, 10,000 tonnes were delivered to Mali, and then 40,000 tonnes were demanded in August and September.

From the numbers above, it can be concluded that Ghana does not completely prohibit the export of fuel. Rather, BOST is delivering lower volumes of it and providing more fuel to domestic consumers.

Why Does Ghana Give Priority to Domestic Fuel?

According to Awoonor, BOST has some 30% share in the fuel market of Ghana, and diesel makes up two-thirds of it. Increased economic activity increased the need for diesel, and it became harder for the distributor to balance both domestic consumption and exports.

The international situation is also a factor, as conflicts that impact regions that produce and transport oil have increased its price.

The price of Brent crude stood at $104.33 per barrel on September 17 as prices dropped from previous peaks amid relief regarding supply disruptions. However, the situation remains tight in diesel as the disruptions in infrastructure in the Middle East and the Russian refining capacity still impact international markets.

Why Burkina Faso and Mali Are Vulnerable

Burkina Faso and Mali are landlocked countries whose ability to source international petroleum depends largely on transport corridors that go through coastal nations.

Among the coastal sources that supply petroleum are Ghana and Côte d’Ivoire. The importance of the other suppliers increases when there is a decrease in petroleum supplied through one corridor.

This is especially so due to the fact that petroleum is required for transport and agriculture as well as production of electricity in the Sahel.

Tema Port Increases the Bottleneck

The move by Ghana happens amid the congestion at the Tema port.

This was according to the Ghana Shippers’ Authority that indicated that the representatives from Burkina Faso, Mali, and Niger were worried about the delay in shipping their goods to the respective markets. The authorities in Ghana have promised to sort out the congestion issue and avoid any further delay and associated demurrage and other charges.

The combination of lack of fuel and logistics at one of the key trade gateways can make the supply chain even more complex.

What Ghana Is Doing to Enhance Energy Security

Furthermore, the BOST Company is building new infrastructure that will enhance domestic energy distribution.

According to the plans of the company, an LPG import facility will be constructed in Tema by Q4 2027, and LPG storage terminals will be developed in six places, with Kumasi being the first location. These infrastructures will enhance the capability of the country to bring in and distribute cooking gas.

The immediate concern for Ghana is to ensure enough domestic supply despite increased international costs, whereas the challenge for Burkina Faso and Mali is to identify other sources.