Energy analysts are urging Ghana to establish strategic fuel reserves and revive domestic refining capabilities as escalating Middle East tensions threaten global oil stability.
The call follows renewed conflict between Israel and Iran, which could disrupt crude supplies and trigger price volatility in import-dependent Ghana.
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), emphasized Ghana’s economic vulnerability during a recent industry briefing. “When global supply chains falter, countries without adequate reserves become price takers at the mercy of international markets,” he stated. Ghana currently maintains no national petroleum buffer, while its sole refinery in Tema operates below capacity.
The Bulk Oil Storage and Transportation Company (BOST) currently manages Ghana’s fuel logistics but lacks mandate for large-scale strategic reserves. Amoah proposed expanding BOST’s role to include emergency stockpiles. “We’ve seen how quickly global crises translate into local pump price hikes,” he noted, referencing Ghana’s 27% fuel price increase during the 2022 Russia-Ukraine conflict.
Reviving the Tema Oil Refinery (TOR) forms the second pillar of the proposed solution. Operational challenges have kept TOR’s 45,000 barrel-per-day capacity largely idle since 2017, forcing Ghana to import over 80% of refined products. Energy economists estimate full refinery operations could save Ghana $500 million annually in foreign exchange.
The Energy Ministry acknowledges these concerns but cites financing challenges. “We’re engaging private partners for TOR’s revitalization while evaluating strategic reserve options,” a ministry spokesperson confirmed. The government recently secured $300 million for refinery upgrades, with completion expected by late 2025.
Ghana’s fuel imports consume approximately 7% of GDP annually, making energy security crucial for economic stability. Neighboring Nigeria’s Dangote Refinery, set to begin regional supply this year, may offer alternative sources, but experts stress the need for domestic solutions.
