By Prince Ahenkorah
The government’s drive to reduce fuel costs and strengthen Ghana’s energy security has received a major boost, as Sentuo Oil Refinery is expected to receive one million barrels of crude oil from Ghana’s Jubilee Field for local processing.
The shipment marks a significant milestone in efforts to increase domestic refining capacity and reduce the country’s reliance on imported petroleum products. Industry experts believe the initiative forms part of the broader strategy by the administration of President John Dramani Mahama to promote local value addition in the petroleum sector.
The move comes at a time when geopolitical tensions in the Middle East continue to create uncertainty in global energy markets, raising concerns about fuel supply and pricing worldwide. Analysts say refining crude oil locally could help Ghana cushion itself against some of these external shocks.
Market observers have noted that Bulk Oil Distribution Companies (BDCs) usually include freight and insurance costs in the pricing of imported petroleum products.
Processing crude oil locally is therefore expected to reduce some of these costs and potentially create room for more competitive fuel prices for consumers.
The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, described the development as timely and beneficial, particularly considering current global market conditions.
He praised the government and the Ministry of Energy for facilitating the arrangement, describing it as one of the most significant interventions in the petroleum sector in recent years.
Mr. Amoah further disclosed that the Tema Oil Refinery (TOR) is also expected to receive a separate consignment of crude oil in July for local processing.
The latest development follows President Mahama’s announcement during a Diaspora Town Hall Meeting in London that TOR would begin refining Ghanaian crude oil in June 2026.
According to the President, the initiative seeks to increase local value addition, reduce dependence on imported refined products, and retain more value within the national economy.
The government has consistently maintained that expanding local refining activities will strengthen Ghana’s energy security, support industrialization, create jobs, and contribute to long-term economic growth.
Sentuo Oil Refinery, located in the Tema Industrial Zone, has emerged as a key player in Ghana’s downstream petroleum sector. According to company records, the refinery has processed more than five million tonnes of crude oil since commencing operations in the country.
Developed under China’s Belt and Road Initiative, the refinery completed its first phase in 2022 with a processing capacity of two million tonnes per year. A second phase completed in 2024 expanded annual processing capacity to five million tonnes.