Ghana is set to increase domestic refining of crude oil at the state-owned Tema Oil Refinery (TOR), in a strategic shift aimed at reducing fuel import costs, improving energy security, and strengthening control over national fuel supply, officials said.

The initiative is part of a broader government effort to maximize value from the country’s oil resources, particularly production from offshore fields such as Jubilee and TEN, while addressing long-standing dependence on imported refined petroleum products.

Authorities say the plan will allow Ghana to process more of its own crude locally instead of exporting it and then importing refined fuels at higher prices a practice that has placed sustained pressure on public finances and foreign exchange reserves.

The refinery at Tema Oil Refinery is expected to play a central role in the policy shift. Government officials argue that increasing local refining capacity will help stabilize fuel supply, reduce exposure to global price volatility, and support industrial development.

“The objective is to ensure that Ghana benefits more fully from its petroleum resources while strengthening energy security,” a government source familiar with the plan said.

Energy analysts note that the move reflects a wider trend across several African oil-producing countries seeking to retain more value from hydrocarbons by expanding domestic refining capacity. However, they caution that infrastructure limitations and maintenance challenges at existing facilities could affect implementation.

Ghana’s refining sector has historically struggled with operational interruptions, underinvestment, and periodic shutdowns, raising questions about the speed at which the new strategy can be fully realized.

Despite these challenges, officials maintain that ongoing upgrades and policy reforms will enable TOR to process a greater share of locally produced crude in the coming years, potentially improving supply reliability and reducing fuel import bills.

The government is expected to release further details on implementation timelines and capacity expansion plans in the coming months.