IES projects future fuel price drops following TOR’s return
The Institute of Energy Security (IES), has projected future drops in pump prices of petroleum products following the resumption of operations by the Tema Oil Refinery (TOR).
According to IES, TOR’s renewed local crude processing capacity would complement efforts to reduce import dependency while offering some relief to consumers amid a volatile fuel price regime.
Speaking in an interview on Joy News on Monday, December 29, Senior Research and Policy Analyst at IES, Derick Emmanuel, highlighted the strategic importance of TOR’s operational resumption for the country’s energy security and pricing stability.
“The renewed crude processing locally could reduce Ghana’s exposure to international oil price fluctuations,” he explained. “When fuel is refined in Ghana, the country doesn’t need to import refined petroleum products. This means international price spikes won’t be felt as much in the local market.”
He emphasized that local refining capacity provides the country with greater flexibility in managing its fuel supply and pricing structure, potentially protecting consumers from what he described as an unstable international petroleum market, adding that TOR’s operations could enable Ghana to build strategic fuel reserves during periods of international market surplus.
“If there’s an oversupply of fuel on the international market, Ghana can refine its own products and then BOST, as the strategic reserve stock will be able to store them,” he said. “This should translate to lower fuel prices at the pumps.”
This approach, according to the Policy Analyst, represents a shift toward greater energy self-sufficiency and could provide the government with more tools to manage domestic fuel pricing policies.
The Tema Oil Refinery (TOR) resumed crude oil refining operations earlier this week after several years of inactivity, marking a major step in efforts to revive Ghana’s downstream petroleum sector.
The resumption comes after the successful completion of extensive Turnaround Maintenance (TAM) on the refinery’s Crude Distillation Unit (CDU), and the installation of a new furnace.
Once fully operational, the upgrade will enhance TOR’s refining capacity from the current 28,000 barrels per stream day to its original nameplate capacity of 45,000 barrels per stream day, with plans for a medium-term expansion to 60,000 barrels per stream day.
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