Privatize Tema Oil Refinery to boost efficiency and reduce fuel costs – IES Director

Privatize Tema Oil Refinery to boost efficiency and reduce fuel costs - IES Director
Tema Oil Refinery

The Executive Director of the Institute for Energy Security (IES), Nana Amoasi VII, has called for the privatisation of the Oil Refinery (TOR) as a solution to the persistent challenges affecting the company.

During an appearance on the “Big Issue” show on Citi TV, Nana Amoasi VII expressed concern over the government's efforts to source for cheaper fuel under the gold for oil policy while TOR has the potential to refine crude oil that could lead to cheaper fuel for consumers.

“You go to TOR and you can have seven people sitting on a desk doing nothing. That is why we need to move TOR away from the political cycle and the politicians. Let us introduce some private hands that have the capacity to introduce some funding for the revamp of TOR and its operations,” Amoasi VII stated.

He added that politicians have been incompetent and inefficient in turning around the fortunes of TOR, hence the need for the government to privatize the refinery to make it efficient and vibrant.

“If the private people are seen to be more efficient in its operations, the government will not get the opportunity to be putting on board its cronies who have no capacity to run the business of refining,” he said.

Fuseini Issah

The former Member of for the constituency, Fuseini Issah, agreed with the IES Boss's call and described TOR as a problem for the government.

Issah added that putting TOR back on stream is not an immediate solution to the increasing price hikes in petroleum products, but a medium to long-term investment.

“TOR is a huge problem. I gather that the Chinese refinery that is coming up has a capacity of I think 100,000 metric tonnes, and it employs 50 people. TOR already employs 1,200 people and the operation cost of TOR is too high. I hear that historically the amount of crude that you have to feed to TOR and its output is about 37 per cent but the Chinese [refinery] will get in excess of 90 per cent,” Issah said.

“Putting TOR back on stream is not an immediate solution, it is a medium to long-term investment.”

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