The Chamber of Petroleum Consumers (COPEC) has called for immediate government action to revive Ghana’s domestic oil refining capacity as a sustainable solution to volatile fuel prices.
The push comes amid ongoing economic pressures on consumers and Ghana’s heavy reliance on imported petroleum products.
Paul Eric Ofori, COPEC’s Head of Research, emphasized the urgency during a television interview: “We must get Tema Oil Refinery operational and support private refineries to reduce our dependence on expensive fuel imports.” He noted that local refining could shield consumers from international market fluctuations, citing current petrol prices of 15 cedis per liter as unsustainable.
Recent price reductions at pumps including 33 pesewas less per liter of Super XP petrol offer temporary relief but don’t address systemic issues. Ghana imports nearly all refined petroleum despite having TOR, a state-owned refinery that has remained inactive due to $500 million in debt and operational challenges dating back to 2017.
Energy analysts support COPEC’s position, pointing to Nigeria’s Dangote Refinery as a regional example of import substitution. However, they caution that reviving TOR would require substantial investment and debt restructuring. The government has previously announced plans to partner with private investors to restore the refinery’s 45,000-barrel-per-day capacity.
The debate over local refining resurfaced as global oil prices show renewed volatility, with Brent crude fluctuating between 8286 per barrel this month. Ghana’s fuel pricing remains vulnerable to both international markets and cedi depreciation, with petroleum imports accounting for 15% of total import expenditure in 2023.
