Bring back TOR to refine and sell fuel at cheaper prices – IES to Akufo-Addo
The Institute for Energy Security (IES) is pleading with President Akufo-Addo once more to reopen the Tema Oil Refinery as soon as possible in order to refine and sell petroleum products at lower prices.
The think-tank expressed concern in a statement that an oil-producing country with a refinery capacity of 45,000 barrels per stream day would have its top government officials abandon its domestic competitive advantage in the name of reliability and affordability, and instead seek to import refined petroleum products from elsewhere.
This comes after President Akufo-Addo stated that government will seek reliable and consistent sources of affordable petroleum products for Ghanaians to alleviate the hardship caused by the increase in fuel prices.
On June 16, 2022, the IES requested President Akufo-intervention Addo’s to restart the Tema Oil Refinery as soon as possible (TOR). A gallon of diesel cost 55 cents at the time.
Since then, the price of a litre of diesel and gasoline has risen by roughly 79% and 95%, respectively.
The IES also expressed concern that the Minister in charge of the sector, Dr. Matthew Opoku-Prempeh, was failing to provide the necessary leadership to urgently lift TOR out of its current state.
According to the IES, it is difficult to imagine how an oil-producing country with a refinery capacity of 45,000 barrels per stream day would have its top government officials abandon its domestic competitive advantage in favour of importing refined petroleum product from elsewhere in the name of reliability and affordability.
“So soon we seem to have forgotten about the mandate of TOR, and the dream of our founding father Osagyefo Dr. Kwame Nkrumah, for Ghana’s petroleum industry and the economy as a whole. That is fair! But what about President Akufo Addo’s plan for TOR, which he re-echoed on May Day 2022”.
It quoted President Akufo-Addo on May Day, as saying, “Nonetheless, intense efforts are being made to rehabilitate the Tema Oil Refinery, to enable it contribute to stabilizing petroleum prices, which should see the light of day very soon. The plan to enhance the dividends of the Tema Oil Refinery, is part of a raft of measures by government to lessen the current economic hardship in the country”.
It added that the government’s sudden appetite for imported fuels to address reliability and cost related issues can best be described as reactionary, morally indefensible, misplaced priority, and a deliberate attempt to increase the fiscal burden of the Ghanaian economy.
“It may interest Ghanaians to know the status of the negotiation between TOR and the strategic partner announced some months ago, and for that matter when the refinery is re-commencing operation after several months of inactivity,” It concluded.
Sources: Energy Ghana
