Ghana’s Energy Sector 2025: Market Leadership Shifts and Rising Consumption Face Governance and Revenue Challenges

Ghana’s petroleum and energy sectors are navigating a complex landscape in 2025, characterized by record-breaking domestic consumption and a significant shift in market leadership, even as the upstream sector grapples with declining production and governance concerns. Total petroleum product consumption surged by 15.29% to reach 7.45 billion litres, driven largely by a massive spike in fuel requirements for power generation. Amidst this growth, Star Oil has emerged as the new market leader in the oil marketing industry, capturing a 10.68% market share with 818 million litres sold, surpassing the long-standing leader GOIL PLC, which saw a modest growth of 1.72% for a 10.32% share. While regional consumption growth was led by the Upper East Region at 55.5%, the Greater Accra Region continues to hold the largest market share at 27%.

Despite the robust demand, the Public Interest and Accountability Committee (PIAC) and other oversight bodies have raised alarms regarding the sector's financial health and transparency. Petroleum receipts plummeted from $1.36 billion in 2024 to $770 million in 2025, reflecting a drop in crude production to 37.3 million barrels. Financial stability is further threatened by significant revenue leakages; a 2025 analysis report revealed that the government lost over GH600 million in tax revenue due to 199 million litres of unaccounted petroleum products. These losses, attributed to illegal activities and inadequate monitoring, coincide with reports of GNPC’s Explorco owing over $561 million. In response, PIAC has emphasized the urgent need for structural reforms to restore investor confidence, even as the Heritage Fund managed to grow to $1.38 billion.

On the infrastructure and utility front, the government is moving to support a 24-hour economy through innovative tariff reforms and grid upgrades. The Public Utilities Regulatory Commission (PURC) is developing a new electricity tariff regime that will offer lower rates for businesses during off-peak hours (11 p.m. to 4 a.m.) using smart meter technology. To support increasing demand, the Ghana Grid Company (GRIDCo) successfully commissioned a new 145MVA Siemens Energy power transformer at the Afienya Substation, more than doubling its previous capacity to stabilize power supply for Accra and Dawhenya. Meanwhile, the Electricity Company of Ghana (ECG) continues to manage essential maintenance across five regions to enhance grid reliability, despite occasional service disruptions.

Global geopolitical tensions continue to exert external pressure on Ghana's economic stability. With oil prices surging above $100 a barrel due to failed negotiations between the U.S. and Iran and ongoing conflicts involving Israel, the Ghanaian government has directed domestic fuel price cuts to provide relief to households and businesses. While the Institute for Energy Security (IES) warns against removing the Bulk Oil Storage and Transportation (BOST) margin to protect fuel security, the broader economy remains vulnerable to imported inflation. As Ghana continues to rely on imports for over 80% of its petroleum needs, the successful integration of local refining capacity and stricter regulatory monitoring will be critical to mitigating these global shocks and ensuring long-term energy sustainability.