Ghana is set to significantly cut down its petrol imports from Nigeria following the resumption of operations at the state-owned Tema Oil Refinery (TOR), a development expected to ease pressure on fuel supply and foreign exchange demand.
The 45,000 barrels-per-day refinery, located in Tema, has restarted operations after remaining dormant since April 2021 due to financial constraints, operational inefficiencies and mounting debt. Its return marks a major step in Ghana’s efforts to strengthen domestic energy security and reduce reliance on imported refined petroleum products.
According to industry sources cited by Leadership and reported via AllAfrica, the revival of TOR means Ghana will no longer need to import the same volumes of petrol from Nigeria, which has been a key supplier through both formal and informal cross-border fuel trade. Nigeria’s Dangote Refinery and other suppliers have increasingly filled the gap left by TOR’s shutdown in recent years.
Government officials say the restart of the refinery will improve local fuel availability, stabilise prices and reduce exposure to international market volatility. With TOR back online, a significant portion of Ghana’s domestic fuel demand can now be met locally, cutting import costs and easing pressure on the cedi.
The refinery’s resumption follows months of rehabilitation works, restructuring and new operational arrangements aimed at ensuring sustainability. Authorities have previously acknowledged that TOR’s prolonged shutdown contributed to higher fuel prices and supply vulnerabilities, especially during periods of global oil market disruptions.
Energy sector analysts note that while TOR’s current capacity may not fully meet national demand, its operations will still play a critical role in reducing import dependency and serving as a buffer during supply shocks. They add that consistent crude supply, sound management and financial discipline will be key to keeping the refinery operational.
Ghana’s move also comes at a time when Nigeria itself is seeking to reduce fuel imports and position itself as a regional refining hub, following the launch of new refining capacity. The shift could slightly alter regional fuel trade dynamics, with Ghana increasingly relying on domestic refining rather than cross-border imports.
The government has reiterated its commitment to ensuring that TOR remains functional, describing the refinery as a strategic national asset vital to energy security, job creation and industrial growth.
