The Institute Energy Security (IES) has disclosed that government’s quest to search for heavily discounted fuel price from other countries is an unrealistic hope.
According to the Institute, if the President and the handlers of Ghana’s Energy Ministry look within, they would find what they are desperately looking for from outside the country. It explained that the search for reliable and affordable source of petroleum products starts with the Tema Oil Refinery.
The IES in a statement issued on Thursday, November 3, indicated that the refinery, which has been down since March 2021 due to lack of crude oil which is the refinery’s main raw material, could have provided the relief sought by government.
“Meanwhile, the search for that heavily discounted fuel price from elsewhere is an unrealistic hope, and the team may return empty handed, unless the expectation/request is exchanged with something valuable to the would-be supplier.”
Institute of Energy Security
The IES questioned how an oil producing country with a refinery capacity of 45,000 barrels per stream day, would have its “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.”
Institute of Energy Security
IES bemoans state of TOR
The trip to source for reliable and affordable fuel elsewhere, IES maintained, defeats the President’s proclaimed intention for TOR and the economy of Ghana. It explained that 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 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”.
Institute of Energy Security
As part of its concerns, the IES also indicated that the Minister in charge of the sector, Dr Matthew Opoku-Prempeh, was failing to provide the required leadership to urgently lift TOR out of its present condition.
Prior to this, President Akufo-Addo in his state of the economy address on Sunday, October 30, 2022, revealed that the increasing cost of living is the number one concern for government as it is driven by fast escalating fuel prices at the pumps, which is caused by factors such as the high crude oil prices on the world market and depreciation of currency. However, he expressed that government is working to “secure reliable and regular sources of affordable petroleum products” for the Ghanaian market.
The President underscored that it is the expectation of government that the arrangement, when successful, coupled with a stable currency will halt the escalation of fuel prices and bring relief to Ghanaians.
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