The Chamber of Bulk Oil Distributors has urged the Tema Oil Refinery and Sentuo Oil Refinery to expand Ghana’s domestic refining capacity as consumers face another round of fuel price increases.
Petrol is expected to sell above GH¢16 per litre from Wednesday, September 16, while diesel could approach GH¢20 per litre at some filling stations.
CBOD Chief Executive Officer Dr Patrick Ofori said producing more fuel locally would strengthen supply security and reduce Ghana’s dependence on imported refined products.
“Unless we increase the capacity of both TOR and Sentuo to certain quantities, we cannot actually say that the two will be enough to supply the demands of the country.” - Dr Ofori
Local supply could ease import burden
Dr Ofori estimated that the two refineries could currently provide between 25% and 30% of Ghana’s petroleum consumption if they operate reliably.
“Having the two in-country at least reduces the burden of product supply insecurity.
“At least you know that between 25% and 30% of your consumption can be domestically sourced, with the remaining being imported.” - Dr Ofori
Greater local production could provide a buffer when shipping routes are disrupted or imported fuel becomes difficult to secure. It would also allow Ghana to retain more refining activity within the domestic economy.
Refining will not guarantee cheaper fuel
Dr Ofori cautioned that domestic refining would not automatically shield motorists from international price movements.
Both refineries require crude oil, which is generally priced using global benchmarks. Their production costs, operational efficiency and access to reliable crude supplies would still influence the final price of petrol and diesel.
The immediate task, he said, is to improve output and efficiency at both plants. That would not remove global market risk, but it could make Ghana less vulnerable whenever international fuel supply becomes tight.
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