As the nation struggles to produce, import, and supply petroleum products, economist and political risk analyst Dr. Theo Acheampong is advocating for extensive changes at the Tema Oil Refinery (TOR) and the Bulk Oil Transportation and Storage Company (BOST).
He stated that "TOR and BOST both require revisions."
Dr. Acheampong remarked in response to talks on the unendingly high cost of fuel that TOR's inefficiencies must be immediately addressed in order for the refinery to restructure its operations.
He argued that because TOR lacks the full capacity to meet market needs, Ghana could be saving money by reducing the enormous expense associated with the importing of processed crude. He also urged for an operational reorganization to resurrect the refinery.
"If we make our domestic refinery fulfill between 30 and 50% of market demand, there could be approximately 10 to 20% cost reductions. Considering the amount of money we spend importing these things, that is not trivial. For TOR to modernize several facilities and pieces of equipment, a new ownership module and fundamental restructure are necessary. Currently, it must achieve cost effectiveness.
The economist stated on BOST, "Fundamentally, we need to return to what BOST was set up for, which is to play an interventionist role in protecting the market-making mechanisms. Unfortunately, it's not going to happen.
Fuel prices have lately surged to almost GH16 per litre, and industry participants have issued warnings that by the end of 2022, they may reach about GH20 per litre.
For instance, a leading oil marketing business, Total Energies, is presently charging GH15.99 for diesel and GH13.10 for gasoline.
Over the earlier in the month prices of GH11.06 per litre for gasoline and GH13.95 for diesel, this marks a significant increase.
Most of the country's quickly growing fuel prices, which started in January at about GHS6.5 per litre, can be attributed to the rise in the item's price on global markets.
In January of this year, the price of crude oil was about $75 per barrel; today, the price is over $86 per barrel.
On the other hand, the dollar currently costs more than GH12, up from GH6.5 at the start of the year.