The Institute for Energy Security(IES) has called on government to revive the Tema Oil Refinery(TOR) in the shortest possible time amid the increasing fuel prices.
A statement issued by the IES on Thursday said the public ought to be updated on the status of the negotiation between TOR and the strategic partner announced some months ago, in respect of the time the refinery is re-commencing operation after several months of inactivity.
“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 must be stated forcefully that “the state is better off prioritizing local crude refining, instead of importation of refined products.”
“Once more, the Institute for Energy Security (IES) wishes to appeal to the President to look within— bring back TOR in the shortest possible time, refine Ghana’s crude domestically, work to strengthen the local currency, and ensure an adequate amount of Dollars is made available to importers of fuel,” IES said.
The refinery has not been operational for a while on the back several challenges, including the inability of the entity to pay its workers and the lack of crude, as managers of the facility were unable to raise letters of credit.
In January 2019, the government announced an ambitious plan to build a new oil refinery to replace the Tema Oil Refinery within the next three to four years.
Price of a liter of Diesel and Petrol has seen an astronomical increase of roughly 79 percent and 95 percent respectively.
Oil Marketing Companies (OMCs) increased fuel prices thrice in a single pricing-window, a cumulative 46 percent for Diesel and 37 percent for Petrol.
Some Bulk Distribution Companies (BDCs) declined to release fuel to the Ghanaian market, forcing some companies to shut down temporary.