The Africa Centre for Energy Policy (ACEP) says Ghana’s crude oil should only be refined at the Tema Oil Refinery (TOR) if it will be cheaper.
The state owned oil refinery has over the years been saddled with debts and operational inefficiencies leading to low production capacity.
Recently, workers of the refinery embarked on a campaign to get Ghana’s oil to be refined at TOR insisting the nation loses more money by not refining its crude at the state refinery.
The Energy Minister, Emmanuel Armah Kofi Buah during the inauguration of the new board for TOR, urged members to revive the non-operational refinery.
He charged them to begin the execution of its core mandate of refining crude oil rather that operating a crude procurement facility.
But the Director of Policy and Research at ACEP, John Peter Amewu on the Citi Breakfast Show said it will be unwise to refine crude at TOR if the refinery’s operational cost is high.
He stated that if TOR can assure Ghanaians that refining crude at the refinery will reduce operational cost, “then of course, there is nothing wrong if TOR refines that product.”
Amewu quickly added that if TOR is given the contract to refine the product but at a higher cost, the prices of petroleum products will soar.
“…So it all depends on the operational cost and operational efficiency of efficiency of TOR,” he said.
He also mentioned that it is imperative for TOR to address its management issues adding that the government must intervene by supporting the nation’s refinery financially.
Amewu insisted that until TOR is technically and financially well placed to reduce operational cost, Ghana cannot refine its crude with TOR.
By: Efua Idan Osam/citifmonline.com/Ghana