Energy analyst Benjamin Nsiah says achieving the government’s target of increasing Tema Oil Refinery’s (TOR) capacity to 100,000 barrels per day could transform Ghana’s petroleum pricing system and make fuel prices more transparent.

Responding to questions on the impact of TOR producing at that level alongside existing refining capacity from Sentuo Refinery, Mr Nsiah said the major benefit would be the possibility of establishing a more predictable and locally driven pricing framework.

Speaking on JoyNews' The Pulse on Monday, August 3, he explained that increased domestic refining capacity could reduce some of the additional costs currently associated with importing finished petroleum products.

"The difference is that there is likely going to be fair pricing of petroleum products locally because all the costs associated with petroleum pricing will be known and also be a bit transparent," he said.

"Total production will be able to meet total demand, thereby issues of premiums being quoted by BDCs will be dealt with. So there is likely going to be fair pricing," he added.

He noted that Ghana's current petroleum pricing structure relies heavily on international benchmarks because the country imports a significant portion of its finished petroleum products.

However, he argued that if TOR and Sentuo Refinery are able to produce enough fuel for local consumption and export, Ghana would need to develop a new pricing regime based on domestic production benchmarks.

"But if TOR and Sentuo are able to do what we consume and even export, it means that we need a pricing regime whereby we set our own benchmark prices," he said.

The energy analyst said such a system could help stabilise prices and potentially make petroleum products more affordable for consumers.

"These benchmark prices will also help stabilise and make sure our prices are comparatively cheaper. So the issue of fairness in pricing will also come to play when TOR does this 100,000 barrels per day," he stated.

He added that beyond pricing benefits, expanding TOR’s capacity could have broader economic implications through increased industrial activity, job creation and reduced dependence on imported refined petroleum products.