IES calls for enforcement of Ghana’s Domestic Market Obligation as TOR resumes operations

The Institute for Energy Security (IES) has urged the government to enforce Ghana's Domestic Market Obligation (DMO) regulations immediately, following the resumption of the Tema Oil Refinery (TOR) operations. IES argues that the absence of a functioning domestic buyer of crude was the primary practical obstacle to implementing the DMO, which has now been addressed with TOR's return to operations.

The organization suggests that a binding and adequate supply obligation is crucial to prevent the restored refinery from competing with international markets for crude. The think tank recommends four immediate steps: issuing 90-day written notices, publishing annual domestic supply requirements, applying the weighted-average pricing methodology, and establishing an independent dispute-resolution mechanism.

IES believes consistent enforcement of the DMO would enhance Ghana's downstream petroleum security by reducing exposure to international shipping delays and fluctuations, protecting TOR's local refining interests, and lowering demand for foreign exchange.