The African Sustainable Energy Centre (ASEC) is calling for the immediate revival and strategic retooling of the Tema Oil Refinery (TOR) to protect Ghana from the impact of global oil price volatility, especially in light of escalating tensions in the Middle East.
ASEC said that Ghana’s continued dependence on imported refined petroleum products leaves the economy dangerously exposed to external shocks, including those triggered by the ongoing Israel-Iran conflict.
The think tank argued that the long-standing underutilisation of TOR represents a missed opportunity for energy independence and economic resilience.
“The continued dormancy of TOR has deprived Ghana of the full benefit of its crude oil production, if TOR is revived and adequately capitalised, Ghana could refine its own crude domestically and avoid being overly vulnerable to geopolitical disruptions in the global oil market,” it said.
However, ASEC proposed that the government provide strong financial guarantees and renegotiate terms to allow TOR to act as the first buyer of Ghana’s crude oil before it is exported.
This, the group said, would mark a major turning point for the energy sector and provide a buffer against price spikes on the international market.
“Reviving TOR is not just a matter of national pride; it is a strategic imperative,” the Centre emphasized.
Further, it would not only reduce fuel import dependency but also create jobs, stimulate industrial development, and ultimately enhance Ghana’s energy security.”
ASEC also reaffirmed support for the government’s Gold for Oil programme, but stressed that its success depends on transparency and accountability in execution.
While acknowledging the potential of the policy to stabilise prices and relieve pressure on Ghana’s foreign reserves, the think tank said it must be part of a broader structural shift toward domestic refining.
In addition, ASEC warned that any further increases in fuel prices, regardless of how minimal, could deepen the economic strain on Ghanaians already grappling with inflation and high living costs.
It dismissed suggestions that current pump prices are tolerable, stating that even small hikes carry significant implications for transportation, food prices, and household expenditure.
“Every effort must be made to avoid compounding the financial stress of already burdened citizens,” the group cautioned.
ASEC believes that an aggressive push to revitalise TOR, combined with effective policy execution on fuel imports, could serve as a sustainable path forward.
