The newly established Sentuo Oil Refinery Limited is poised to receive the highest amount of tax exemptions, totaling $164,633,012.00, pending parliamentary approval.
This refinery is among 42 companies listed in a document submitted to Parliament seeking approval for approximately $335,072,712.13 in tax exemptions under the government’s One District One Factory (1D1F) initiative.
Initially presented to Parliament in 2022 by former Finance Minister Ken Ofori-Atta under The Exemptions Act, 2022 (Act 1083), the proposal faced a deadlock due to disagreements.
The Minority in Parliament claimed the exemptions were a cover for corruption, suggesting they benefited the ruling party’s allies. However, proponents argued that these tax breaks are essential for the success of businesses within the 1D1F initiative, promising economic growth and attracting investments.
On May 17, 2024, the Majority revisited the request for parliamentary consideration. Sentuo Oil Refinery, commissioned by President Nana Addo Dankwa Akufo-Addo on January 26, 2024, represents Ghana’s first private oil refinery.
Built by the Chinese conglomerate Sentuo Group in the Tema Industrial Area, the facility cost $2 billion and has an initial processing capacity of 40,000 barrels per day, scalable to 100,000 barrels.
Despite these advancements, the Institute of Energy Security and the Chamber of Petroleum Consumers have urged the National Petroleum Authority to shut down Sentuo Oil Refinery due to licensing issues related to fuel distribution in the Ghanaian market.