Ghana’s Institute for Energy Security (IES) has called for the immediate enforcement of the nation's Domestic Market Obligation (DMO) regulations. This demand follows the Tema Oil Refinery (TOR) resuming operations, which IES identifies as removing the primary practical obstacle to DMO implementation. The energy think tank released a policy research paper on August 14, 2026, outlining its recommendations.
The IES specifically advocates for implementing Regulation 32 of the Petroleum (Exploration and Production) (General) Regulations, 2018 (L.I. 2359), as amended by L.I. 2390. This regulation operationalises Section 71 of the Petroleum (Exploration and Production) Act, 2016 (Act 919). This section empowers the sector Minister to require petroleum contractors to sell a defined portion of their crude entitlement on the domestic market. IES argues that the legal framework already exists, requiring only consistent administrative enforcement.
This push for DMO enforcement comes as Ghana seeks to bolster its energy independence and manage its foreign exchange reserves. The country’s economy has faced pressures from global oil price volatility and a high import bill for refined petroleum products. Ensuring a stable, local crude supply for TOR could significantly reduce these external dependencies. This move aligns with broader government efforts to stabilise the Ghana cedi and enhance local industrial capacity.
“What has been missing is not legal design but consistent administrative enforcement,” the IES paper stated. The think tank believes TOR's resumption of refining operations in December 2025 addressed the strongest practical argument against enforcing the DMO. Previously, the absence of a functioning domestic buyer of crude was cited as a major barrier. TOR resumed operations on December 19, 2025, after extensive Turnaround Maintenance on its Crude Distillation Unit.
Enforcing the DMO could significantly impact Ghana’s downstream petroleum security and foreign exchange stability. A guaranteed domestic crude allocation would allow TOR to refine a portion of Ghana’s petroleum needs locally. This reduces exposure to international shipping schedules, financing delays, and fluctuating freight costs. Furthermore, increased domestic refining could reduce demand for foreign exchange by replacing imported refined products. This could help ease one source of dollar demand in the economy, potentially supporting efforts to stabilise the cedi.
TOR is currently operating at about 28,000 barrels per stream day. The refinery plans to restore its nameplate capacity of 45,000 barrels per stream day. Ultimately, it aims to expand to 100,000 barrels per stream day. Ghana’s estimated daily petroleum consumption is about 100,000 barrels. If TOR reaches its intended capacity, it could meet more than half of the national demand. This would mark a significant step towards energy self-sufficiency.
IES cited experiences from Nigeria and Indonesia to demonstrate the importance of an effective domestic crude supply framework. In Nigeria, local refineries reportedly received less than half of the crude allocated under its Domestic Crude Oil Supply Obligation in Q1 2026. This led to a currency mismatch for refineries. Indonesia, conversely, incorporates its DMO into production-sharing contracts, providing predictable crude access for domestic refineries.
The IES urges the government to take four immediate steps to operationalise the DMO. First, the Energy Minister should issue 90-day written notices under Regulation 32(1). This would place TOR’s crude feedstock requirement on a recurring calendar-year basis. Second, the Energy Commission and Ghana National Petroleum Corporation (GNPC) should publish annual domestic supply requirements under Regulation 32(4) to (7). These volumes should be broken down by month. Third, the weighted-average pricing methodology under Regulation 32(8) needs consistent application. Finally, the independent expert dispute-resolution mechanism under Regulation 32(9) should be formally constituted. This should happen before any potential disagreements arise.
The think tank warns against allowing domestic crude allocations to depend on the discretion of successive administrations. Without a binding and adequate supply obligation, even a restored refinery could compete with international markets for crude. This could undermine the gains made from TOR’s rehabilitation. IES argues that Ghana risks eroding TOR’s turnaround gains if domestic crude supply continues through ad hoc arrangements. The think tank calls for a predictable, rules-based system for supplying domestic refineries. It asserts that TOR’s operational restoration makes Regulation 32 enforcement both necessary and practicable.