Tema Oil Refinery MD Projects Lower Fuel Prices Under Proposed Cedi-for-Crude Arrangement

The Managing Director of Tema Oil Refinery, Edmond Kombat, has said Ghanaians should expect lower fuel prices once Cabinet and Parliament approve a proposal for the Ghana National Petroleum Corporation to accept cedis instead of dollars for crude oil purchases. The remark was reported by TV3GH, adding a pricing dimension to the refinery’s recent return to profitability.

Under the proposal, GNPC would accept payment in Ghanaian cedis for crude oil supplied to the refinery, reducing the demand for foreign exchange in the procurement process. Kombat’s argument is that easing the dollar requirement would lower the cost of crude acquisition, and those savings could be passed on to consumers at the pump. The arrangement is subject to approval by both Cabinet and Parliament before it can take effect.

The pricing of fuel in Ghana is closely tied to the exchange rate, since crude oil and refined products are traded in dollars on international markets. Any mechanism that reduces dollar exposure in the domestic supply chain could ease pressure on pump prices, though the extent of the benefit would depend on how the cedi-denominated transactions are structured and priced.

The proposal follows TOR’s announcement of a return to profit after years of decline, with operational reforms credited for the turnaround. Lower crude procurement costs would complement those efforts by improving the refinery’s margins and potentially strengthening its competitive position. The approval process will now determine whether the cedi-for-crude model moves from proposal to policy.

Consumers and industry players will be watching the Cabinet and Parliament stages closely, as fuel prices remain a major cost-of-living concern. If approved and implemented effectively, the arrangement could mark a significant shift in how Ghana finances its crude oil purchases. Further details on the mechanics and expected timeline are awaited.