TOR’s Debt Balloons to $517 Million Despite Decades of Levy Collection

The Tema Oil Refinery (TOR) is facing a crippling financial crisis, with its debt now standing at a staggering $517 million, despite nearly two decades of collecting the TOR Debt Recovery Levy—a charge imposed on petroleum consumers since 2003 to help settle the refinery’s obligations.

The alarming debt figure was disclosed by TOR’s Acting Managing Director, Edmund Kombat, following a briefing to Parliament’s Energy Committee. He attributed the ballooning debt to a combination of unpaid crude oil supplies, third-party trade liabilities, and legacy debts, alongside accounting adjustments required under Ghana’s IMF economic reform programme.

“There were instances where crude was supplied and never paid for. Third-party debts accumulated. Additionally, grants previously received from the Ministry of Finance were reclassified as loans under IMF directives,” Kombat explained.

He further pointed to poor financial planning, including unhedged trades, which left TOR vulnerable to market volatility, compounding its financial distress. “Some of the trades were not hedged, and the exposure resulted in significant losses,” he added.

Despite these setbacks, Kombat assured the public that audits and verifications are ongoing to determine the extent of the financial liabilities and to chart a course for recovery. “Once we complete verification, the figures will be made public,” he stated.

The news has sparked public concern, especially given that the TOR Debt Recovery Levy—collected for over 21 years—was originally introduced to clear the refinery’s legacy debts. Critics argue that the situation reflects chronic mismanagement and a lack of accountability in the country’s energy sector.

Meanwhile, TOR is pushing for a complete operational restart by October 2025. Rehabilitation of key infrastructure such as the Crude Distillation Unit (CDU) and the Residue Fluid Catalytic Cracker (RFCC) is underway as part of efforts to revive domestic petroleum refining and reduce Ghana’s dependence on imported fuel.

TOR’s leadership is appealing to Parliament and stakeholders for support, promising to restore efficiency and end the cycle of mismanagement that has plagued Ghana’s only oil refinery for decades.