The Institute for Energy Security (IES) has called on the Ghanaian government to immediately enforce Ghana's Domestic Market Obligation (DMO) regulations. This action follows the Tema Oil Refinery's (TOR) resumption of operations, which IES believes removes the main practical barrier to implementation.
IES released a policy research paper on August 14, 2026, stating that the legal framework for securing domestic crude supplies already exists. The think tank argues that consistent administrative enforcement is now required. 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 legal provision empowers the sector Minister to require petroleum contractors to sell a defined portion of their crude entitlement on the domestic market. The IES paper highlighted that the missing element has been consistent administrative enforcement, not legal design. The resumption of refining operations at TOR in December 2025 addressed the strongest practical argument against DMO enforcement. This argument centered on the absence of a functioning domestic buyer for crude oil. TOR resumed operations on December 19, 2025, after extensive maintenance on its Crude Distillation Unit between August and October that year. The refinery currently operates at about 28,000 barrels per stream day.
Ghana's estimated daily petroleum consumption is about 100,000 barrels. IES notes that TOR, if restored to its intended capacity, could meet more than half of national demand. The refinery plans to restore its nameplate capacity of 45,000 barrels per stream day. It also aims to eventually expand to 100,000 barrels per stream day. The think tank cited experiences from Nigeria and Indonesia to illustrate the importance of an effective domestic crude supply framework. In Nigeria, local refineries reportedly received less than half of allocated crude in Q1 2026, despite a Domestic Crude Oil Supply Obligation. Only 28.5 million barrels were supplied out of 61.9 million barrels allocated. This shortfall, combined with naira-denominated sales, created a currency mismatch. Indonesia, conversely, integrated its DMO into production-sharing contracts from the start, ensuring predictable crude access.
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, IES recommends publishing and consistently applying the weighted-average pricing methodology under Regulation 32(8). Finally, the think tank calls for the formal constitution of the independent expert dispute-resolution mechanism provided under Regulation 32(9). This mechanism should be established ahead of any potential disagreements.
Consistent DMO enforcement could strengthen Ghana's downstream petroleum security. 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 freight cost fluctuations. The pricing mechanism under Regulation 32(8), if applied consistently, could also reduce TOR's exposure to sharp short-term movements in international crude prices. Increased domestic refining could further reduce demand for foreign exchange. It would replace some imported refined petroleum products with locally produced fuel. This could help ease one source of dollar demand in the economy. It could also potentially support efforts to stabilise the cedi.
IES cautions the government against allowing domestic crude allocations to depend on the discretion of successive administrations. The think tank warns that without a binding and adequate supply obligation, even a restored refinery could compete with international markets for crude. This would undermine gains from TOR's rehabilitation. A restored refinery competing for feedstock against export markets, without a binding supply obligation, will be forced into foreign currency crude purchases. Ghana risks eroding the gains from TOR's turnaround if domestic crude supply remains ad hoc. IES urges the government to move from policy discretion to a predictable, rules-based system for supplying domestic refineries. TOR's operational restoration makes Regulation 32 enforcement both necessary and practicable.