TOR MD Proposes Cedi-Based Crude Oil Purchases to Help Stabilise Fuel Prices

ACCRA, Ghana — The Managing Director of the Tema Oil Refinery (TOR), Edmond Kombat, has proposed amending Ghana’s petroleum laws to allow the refinery to purchase locally produced crude oil in Ghana cedis rather than US dollars, as part of efforts to reduce foreign-exchange pressures and promote greater fuel price stability.

Speaking at a Government Accountability Series press briefing in Accra on Monday, October 26, Kombat said the proposal would enable TOR to buy crude from the Ghana National Petroleum Corporation (GNPC) and its partners in the local currency.

He argued that reducing the refinery’s exposure to dollar-denominated crude purchases, alongside expanding domestic refining capacity, could help limit the effect of exchange-rate fluctuations on fuel prices.

Kombat said the government was working towards the necessary legal changes, which would require consideration by Cabinet and Parliament. The proposal has not yet been implemented.

TOR wants to reduce the impact of dollar fluctuations

Kombat explained that allowing TOR to pay for Ghanaian crude in cedis could help reduce the pressure that movements in the cedi-dollar exchange rate place on the domestic petroleum market.

He said the refinery’s ability to process more locally produced crude would also help strengthen Ghana’s fuel supply and reduce reliance on imported finished petroleum products.

The proposal forms part of a broader plan to connect Ghana’s oil production, domestic refining and fuel distribution more closely, retaining more economic value within the country.

However, paying for crude in cedis would not automatically eliminate all foreign-exchange requirements in the petroleum sector. The overall benefit would depend on the commercial terms of crude purchases, the volume refined locally and the extent to which domestic production replaces imports.

Increased refining capacity central to the plan

Kombat also emphasised the need to increase TOR’s production capacity so that it could supply a greater share of Ghana’s petroleum requirements.

According to the Ghana News Agency, the refinery was processing approximately 28,000 barrels of crude oil per stream day, with plans to increase throughput to between 45,000 and 55,000 barrels per day through additional engineering works.

Medium-term plans include raising capacity to 60,000 barrels per day, while a longer-term government roadmap envisages increasing processing capacity to 100,000 barrels daily, with a possible eventual target of 200,000 barrels per day.

Kombat said greater domestic refining would strengthen fuel supply security and help create conditions for more stable prices at the pump.

TOR has resumed processing Ghanaian crude

The refinery has been receiving crude cargoes as part of its operational recovery. Kombat told the Ghana News Agency that TOR had received several cargoes since May 2026, including Ghana’s Jubilee crude and a subsequent delivery of approximately 950,000 barrels of Sankofa crude through GNPC.

He said refining Ghanaian crude locally would help retain more value in the domestic economy while linking the upstream petroleum industry with local processing and distribution.

The refinery has also been working with industry partners, including GOIL, to increase the availability of locally refined products.

Fuel price stability will depend on several factors

Although cedi-based crude purchases and increased domestic refining could help reduce some foreign-exchange pressures, fuel prices in Ghana are influenced by several other factors.

These include international crude oil and refined-product prices, exchange rates, taxes and levies, transportation expenses, and the margins applied throughout the supply chain.

The proposal would therefore need to be assessed alongside the cost of local refining, the reliability of crude supplies and the financial arrangements between TOR, GNPC and its partners.

Kombat’s proposal signals an effort to strengthen domestic refining and reduce the influence of dollar movements on Ghana’s petroleum sector. Whether it delivers sustained price stability will depend on the legal changes, commercial arrangements and operational improvements that follow.

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