BY Nadia Ntiamoah
Pressure is intensifying on the government to redirect proceeds from the Tema Oil Refinery (TOR) Recovery Levy toward fully revamping the refinery, as Ghana seeks to reduce its dependence on imported petroleum products and restore the country’s once-vibrant refining capacity.
The debate has resurfaced at a time when TOR, which has struggled for more than a decade, is showing early signs of recovery following years of operational decline and financial distress.
TOR’s challenges date back to the late 1990s when rising debt, obsolete equipment, poor management decisions, and inconsistent crude supply severely affected its performance.
Several attempts by successive governments—ranging from restructuring plans and private partnerships to bailout proposals—failed to deliver sustainable results.
By 2020, the refinery was operating far below capacity, with most of its equipment idle and a debt burden running into hundreds of millions of dollars.
This situation forced Ghana to rely heavily on refined fuel imports, exposing consumers to international price volatility and weakening the country’s energy security.
In recent months, however, government-led efforts to restart the refinery have sparked renewed optimism.
But industry experts believe the recovery will be short-lived if the facility lacks consistent access to capital for maintenance, retooling, and crude procurement.
It is against this backdrop that calls are mounting for a portion of the TOR Recovery Levy—collected over several years—to be channelled directly into restoring the refinery’s operations.
Speaking to Citi Business News, the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, stressed that sustainable investment is essential if TOR is to function at optimal levels.
He warned that without significant financial backing, the refinery’s revival could collapse soon after restarting.
“TOR would need investment. If we don’t pump in the appropriate funding, we would simply be waiting for them to fail so that we blame them again,” Duncan Amoah said.
“You cannot finance cargoes with TOR’s current books. They are in huge deficits or debts. We expect that the TOR Recovery Levy collected over the years will be applied by the Finance Ministry to support their operations.”
Duncan Amoah further proposed that government establish at least a US$80 million revolving fund to enable the refinery to secure a steady supply of crude oil.
According to him, the refinery requires financing to bring in at least two to three crude cargoes periodically in order to maintain operational consistency and avoid the frequent shutdown-repair cycles that have plagued its history.
Beyond funding, he noted the need for policy reforms guaranteeing a reliable allocation of Ghana’s domestically produced crude oil to TOR.
