With fuel prices set to rise, the Chamber of Bulk Oil Distributors5, CBOD, wants Sentuo Oil Refinery and the Tema Oil Refinery, TOR, to increase their output to help ease the pressure on consumers.
Fuel prices are expected to go up from today, with petrol likely to cost more than GH¢16 per litre and diesel approaching GH¢20 per litre.
CBOD Chief Executive Officer, Dr Patrick Ofori, told Citi News that boosting local refining would give Ghana some protection against changes in global fuel prices and possible supply challenges.
He said the two refineries would have to raise their output significantly if Ghana is to depend more on locally refined products to meet its fuel needs.
“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,” he said.
According to Dr Ofori, the fact that Ghana currently has two operating refineries means some of the country’s fuel requirements can already be met locally, helping to reduce concerns over the availability of petroleum products.
He said local refining could account for between 25% and 30% of the country’s total fuel consumption, with imports making up the rest.
“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,” he added.
Dr Ofori, however, explained that local refining would not completely insulate Ghana from movements in global fuel prices because both refineries depend on crude oil from the international market.
He is therefore advocating measures to improve the efficiency and production levels of Sentuo and TOR so they can contribute more to meeting the country’s fuel requirements.
