Ghana’s Tema Oil Refinery (TOR) is back in operation, offering hope for more stable domestic fuel prices and economic resilience, the Ghana Association of Banks (GAB) said in its 2026 Industry Outlook.
Fuel costs have long been a source of pressure for households and businesses alike. Between 2015 and 2021, diesel and petrol prices steadily rose due to global oil markets and cedi depreciation.
The spikes peaked in 2022, when diesel reached GHS 19.61 per litre and petrol GHS 16.58 per litre, before easing slightly in 2023 and 2024. By October 2025, prices moderated further to GHS 13.67 and GHS 13.11 per litre, respectively.
GAB emphasized that the restart of TOR’s refining operations in late 2025 could anchor domestic fuel prices.
“The renewed TOR operations present a promising structural anchor for cooling fuel prices going forward,” the report said, highlighting the refinery’s potential to reduce dependence on imported fuel.
The refinery’s revival follows years of inactivity, caused by equipment obsolescence, financial constraints, and debt accumulation, which forced TOR to rely on imported refined products. Extensive Turnaround Maintenance (TAM) between August and October 2025 allowed the refinery to resume operations in December 2025 on a phased basis, restoring capacity while ensuring operational stability.
Refining operations officially began on Friday, December 19, 2025, with all petroleum product streams being routed into storage for the first time in several years. The National Petroleum Authority (NPA) conducted comprehensive regulatory inspections and confirmed TOR’s full compliance with all mandatory safety and operational requirements before granting clearance.
For banks and the wider economy, the implications are significant. Lower fuel costs can ease inflationary pressures, reduce input costs for businesses, and support more stable loan portfolios.
“Manage concentration risks in commodity-linked lending while leveraging improved FX inflows to expand trade finance and transaction banking services,” GAB advised, underscoring the link between energy stability and financial sector health.
The TOR revival also strengthens Ghana’s long-term energy strategy. With upgraded equipment and plans to reach 45,000 barrels per stream day, the refinery is poised to improve energy security, reduce foreign exchange outflows, and support household budgets.
TOR has completed the installation of a new furnace, F-61, which will soon be commissioned and integrated into the Crude Distillation Unit (CDU). This critical upgrade will enable the refinery to restore its original nameplate capacity of 45,000 barrels per stream day, up from the current operating level of 28,000 barrels per stream day, with a clear strategic pathway to expand the capacity to 60,000 barrels per stream day in the medium term, following the installation of a new air cooler.
Yet, GAB cautioned that global oil price volatility and exchange rate fluctuations remain potential risks that require continued vigilance.
Management expressed appreciation to President John Dramani Mahama for his continued support, vision, leadership, and commitment to the restoration of TOR as a critical pillar of Ghana’s energy infrastructure. The refinery also acknowledged the role of the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, citing his policy leadership, technical oversight and hands-on engagement as instrumental in bringing the refinery back to operational life.
By combining structural improvements with prudent policy and banking practices, TOR’s restart represents more than an industrial milestone. It is a strategic lever for moderating one of Ghana’s most volatile cost drivers, offering households, businesses, and the financial sector a rare chance at greater stability in 2026.
Ghana currently imports the bulk of its refined petroleum products, putting pressure on foreign exchange reserves. The resumption of domestic refining is expected to help conserve foreign exchange and stabilise fuel prices in the medium term.
TOR is Ghana’s first value-added investment after the Akosombo dam and was commissioned in September 1963. The refinery is renowned for providing high-quality petroleum products with exclusive production of Aviation Turbine Kerosene (ATK), which is among the best in Africa. Ghana’s fishing sector depends solely on the refinery as the only producer of premix fuel.