The Executive Director of the Centre for Environmental and Sustainable Energy(CEMSE), Mr Benjamin Nsiah, has called on the government to prioritise local refining of crude oil as part of efforts to strengthen Ghana’s energy security and reduce dependence on foreign petroleum products.

Speaking on the issue of fuel supply and energy stability on Accra 100.5 FM's news on Tuesday, Mr Nsiah explained that Ghana already produces crude oil and must take deliberate steps to integrate the sector vertically by refining more of the product locally rather than relying heavily on imports.

According to him, some of the country’s refineries already have the capacity to process significant volumes of crude oil if they are properly utilised.

He cited the Tema Oil Refinery, which he said has the capacity to refine about 28,000 barrels of crude oil per day and could even increase production to around 30,000 barrels or more with the right support.

He also mentioned other private refineries, such as Senteo Refinery,  Platon Gas Oil Terminal, which can process between 7,000 and 10,000 barrels daily, and Akwaba Refinery, which has the capacity to refine around 5,000 barrels.

Mr Nsiah suggested that Ghana could amend certain laws to ensure that companies importing crude oil without long-term contracts are required to supply part of their products to local refineries, such as the Tema Oil Refinery and Akwaba Refinery, among others, for processing.

“If our local refineries are given the crude oil to refine, we will reduce our reliance on foreign refined products,” he explained.

He noted that while the Free on Board (FOB) price of petroleum products would still be influenced by international market prices, refining locally would significantly reduce other costs such as shipping, insurance, and transportation.

According to him, these costs often increase during global conflicts and geopolitical tensions, making fuel imports more expensive.

However, refining locally would shorten transportation distances and lower insurance costs, helping stabilise fuel supply in the medium term.

Mr Nsiah added that local refining would also help Ghana insulate itself from external shocks.

Even when global oil prices rise due to international conflicts, the country would still have some level of fuel availability and accessibility through its domestic refining capacity.

Looking at the long-term strategy, he urged policymakers to rethink Ghana’s reliance on fossil fuels in the transport sector.

Mr Nsiah suggested that the country should begin transitioning gradually toward electric vehicles to reduce fuel consumption in transportation.

“If global conflicts affect fuel supply, it means we must start thinking about shifting our transport sector toward electric vehicles,” he said.

He further explained that such a transition would require Ghana to strengthen its power generation base by investing in stable energy sources that can support the national grid.

According to him, the country should consider expanding base-load power generation options, including nuclear energy, to ensure a reliable electricity supply to support electric mobility and other industrial needs.

Mr Nsiah emphasised that improving Ghana’s energy mix and boosting local refining capacity would help the country better withstand external shocks and ensure long-term energy security.

He concluded that Ghana must adopt a strategic approach to managing its energy resources so that global crises do not significantly disrupt the country’s fuel supply and economic stability.