November 29, 2022

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Revive TOR to halt gas worth hikes – IES to Gov’t

5 min read

The Institute for Power Safety (IES) has admonished the federal government to restore the Tema Oil Refinery (TOR) to lend a hand curb expanding gas costs.

The IES in a commentary described the federal government’s determination to import gas to deal with cost-related problems as “reactionary, morally indefensible” and a out of place precedence that won’t cope with the rampant gas worth will increase in the longer term.

“Executive’s unexpected urge for food for imported gas to deal with reliability and cost-related problems can highest be described as reactionary, morally indefensible, out of place precedence, and a planned try to build up the fiscal burden of the Ghanaian financial system. It should be said forcefully that the state is at an advantage prioritizing native crude refining, as an alternative of importation of delicate merchandise.”

“Another time, the Institute for Power Safety (IES) needs to attraction to the President to appear inside— convey again TOR within the shortest conceivable time, refine Ghana’s crude regionally, paintings to support the native foreign money, and make sure an ok quantity of Bucks is made to be had to importers of gas,” IES stated.

On Tuesday, gas costs hit an all-time prime with Petrol promoting at about GHS18 consistent with litre and diesel retailing at over GHS 23 a litre.

Under is the total commentary through IES:

On June sixteenth 2022 when the Institute for Power Safety (IES) known as for His Excellency the President’s intervention to as an issue of urgency revive the Tema Oil Refinery (TOR), a gallon of diesel used to be promoting for Gh¢55. As a part of the troubles, the IES indicated that the Minister accountable for the sphere used to be failing to give you the required management to urgently raise TOR out of its provide situation.

The IES Press commentary highlighted the opportunity of Ghana shedding out at the possibilities of the Russian-Ukraine struggle, and the possible to generate synergy between the upstream and the downstream sectors of the Ghanaian petroleum trade. The commentary captured that “the worldwide financial disaster led to through the Covid-19 pandemic and the Russian-Ukraine battle by some means gifts a chance for the rustic’s petroleum sector.

Between June sixteenth 2022 (when the IES known as for the President’s intervention) and now, many undesiring occurrences were recorded within the downstream petroleum sector, which has introduced untold hardship on voters, and on industries in Ghana.

Value of a litre of Diesel and Petrol has observed an astronomical build up of kind of 79 % and 95 % respectively.

Oil Advertising Firms (OMCs) greater gas costs three times in one pricing window, a cumulative 46 % for Diesel and 37 % for Petrol.

Some Bulk Distribution Firms (BDCs) declined to free up gas to the Ghanaian marketplace, forcing some firms to close down briefly.

Including to those unlucky incidents, is the file of most sensible govt functionaries having to depart the shores of Ghana to seek for what they describe as “dependable and common assets of inexpensive petroleum merchandise” for Ghanaians.

This involves the IES as surprising to listen to that the Power Ministry is in reality main a bunch roaming the arena searching for dependable and common assets of inexpensive petroleum merchandise for the Ghanaians, leaving behind its function to urgently convey TOR into an operational mode, to offer that reliability to an uninterrupted provide of gas for the rustic.

In the meantime, the seek for that closely discounted gas worth from in different places is an unrealistic hope, and the crew might go back empty-handed, until the expectancy/request is exchanged with one thing treasured to the would-be provider.

If His Excellency the President and the handlers of Ghana’s Power Ministry glance inside, they’d in finding what they’re desperately searching for from out of doors the rustic. Certainly the seek for dependable and inexpensive supply of petroleum merchandise begins with the Tema Oil Refinery, which has been down since March 2021, because of loss of crude oil which is the refinery’s major uncooked subject matter.

It beats ones creativeness how an oil generating nation with a refinery capability of 45,000 barrels consistent with circulation day (bpsd), would have it most sensible govt officers abandon its home aggressive benefit, and moderately search to import delicate petroleum product in different places, within the title of reliability and affordability.

So quickly we appear to have forgotten concerning the mandate of TOR, and the dream of our founding father Osagyefo Dr. Kwame Nkrumah, for Ghana’s petroleum trade and the financial system as an entire. This is honest! However what about His Excellency President Akufo Addo’s plan for TOR, which he re-echoed on Might Day 2022.

“However, intense efforts are being made to rehabilitate the Tema Oil Refinery, to permit it give a contribution to stabilizing petroleum costs, which must see the sunshine of day very quickly. The plan to support the dividends of the Tema Oil Refinery, is a part of a raft of measures through govt to minimize the present financial hardship within the nation” – President Nana Addo, 2022.

The shuttle to supply for dependable and inexpensive gas in different places defeats the President’s proclaimed aim for TOR and the financial system of Ghana. As a substitute of giving precedence to home refining of Ghana’s indigenous crude oil, govt is moderately resorting to playing at the importation of liquid fuels with out giving a idea to the ensure of enough and dependable provide of identical.

Executive’s unexpected urge for food for imported fuels to deal with reliability and value linked problems can highest be described as reactionary, morally indefensible, out of place precedence, and a planned try to build up the fiscal burden of the Ghanaian financial system. It should be said forcefully that “the state is at an advantage prioritizing native crude refining, as an alternative of importation of delicate merchandise.”

President, it’s going to passion Ghanaians to grasp the standing of the negotiation between TOR and the strategic spouse introduced some months in the past, and for that subject when the refinery is re-commencing operation after a number of months of state of being inactive.

Another time, the Institute for Power Safety (IES) needs to attraction to the President to appear inside— convey again TOR within the shortest conceivable time, refine Ghana’s crude regionally, paintings to support the native foreign money, and make sure an ok quantity of Bucks is made to be had to importers of gas.