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Revive TOR to provide reliable and affordable fuel – IES to Prez Akufo-Addo

  • SOURCE: citibusinessnews | Editor
    • POSTED ON: November 8, 2022
    • CATEGORY:

    The Institute for Energy Security, IES, is calling on
    government to do all it can to ensure the Tema Oil Refinery is revived, in the
    wake of hikes in prices of fuel at pump stations.

    The call by the Institute comes on the back of a recent
    announcement by President Akufo-Addo that steps are being taken to secure
    reliable and regular sources of affordable petroleum products as part of
    efforts to bring reprieve to consumers of the product.

    In a statement, it expressed worry that an oil producing
    country with a refinery capacity of 45,000 barrels per stream day would have it
    top government officials abandon its domestic competitive advantage, and rather
    seek to import refined petroleum product elsewhere, in the name of reliability
    and affordability.

    The IES, on June 16th 2022 called for His Excellency the
    President’s intervention to as a matter of urgency revive the Tema Oil Refinery
    (TOR). At that time, a gallon of diesel was selling for Gh¢55.

    As part of the concerns, the IES indicated that the Minister
    in charge of the sector was failing to provide the required leadership to
    urgently lift TOR out of its present condition.

    Between June 16th 2022 (when the IES called for the
    President’s intervention) and now, many undesiring occurrences have been
    recorded in the downstream petroleum sector, which has brought untold hardship
    on citizens, and on industries in Ghana.

    – 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.

    The IES explained further that It beats one’s imagination
    how an oil-producing country with a refinery capacity of 45,000 barrels per
    stream day, would have it top government officials abandon its domestic
    competitive advantage, and rather seek to import refined petroleum product
    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, 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”.

    “The trip to source for reliable and affordable fuel
    elsewhere defeats the President’s proclaimed intention for TOR and the economy
    of Ghana. Instead of giving priority to domestic refining of Ghana’s indigenous
    crude oil, government is rather resorting to gambling on the importation of
    liquid fuels without giving a thought to the guarantee of sufficient and
    reliable supply of same”, it stressed.

    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.

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