Exploring the potential benefits of strengthening institutions to Ghana’s economy: The case of full petroleum downstream sector deregulation in Ghana
According to the International Monetary Fund [IMF] (2013), energy reform efforts have been suspended in election years since the year 2000 by the various Ghanaian governments, making energy deregulation policy unsustainable. The IMF (2013) identified Ghana’s Cedi depreciation as a cause of this phenomenon, signaling institutional weakness in Ghana’s economy. Thus, this research explores the potential benefits of strengthening institutions to Ghana’s economy with regards to the full petroleum downstream sector deregulation. A key research question is to investigate the strategic position of the National Petroleum Authority (NPA) in the deregulated petroleum downstream sector. Another question seeks to determine challenges Bank of Ghana faces in ensuring a sound and stable monetary policy. The research design relies mainly on qualitative methods by employing qualitative data and some quantitative research techniques and data. The respondents included the NPA, the Finance Ministry, the Bank of Ghana, Imani Ghana, Association of Oil Marketing Companies, Institute of Economic Affairs, and Africa Centre for Energy Policy. Key among the findings is that the Executive arm of government has the constitutional power to use certificate of urgency to alter market outcomes, especially when fuel prices are soaring beyond expectations.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2016
Ghana, National Petroleum Authority (NPA), downstream petroleum sector, deregulation