TOR MD advocates Sub-Saharan crude oil benchmark to curb fuel price volatility

The Managing Director of Tema Oil Refinery (TOR), Edmond Kombat, has advocated the creation of a Sub-Saharan African crude oil pricing benchmark to help stabilise fuel prices and shield the continent from global geopolitical shocks.

Speaking during a tour of TOR by fellows of the Africa Extractives Media Fellowship on Thursday, March 26, 2026, Kombat noted that Africa’s dependence on international benchmarks such as Brent crude and West Texas Intermediate (WTI) leaves countries exposed to price fluctuations driven by events outside the region.

He pointed to recent tensions in the Middle East as an example, explaining that such developments often trigger spikes in crude oil prices despite having little direct impact on African markets.

“We currently price crude based on Brent, which is Europe-led, and WTI, which is America-led,” he said. “But Ghana is producing crude, Nigeria is producing, Angola, Côte d’Ivoire, Gabon, Equatorial Guinea — so why can’t we have a Sub-Saharan African benchmark?”

Kombat argued that establishing a regional pricing system would allow African countries to better reflect their own market conditions and reduce exposure to speculative pricing and risk premiums associated with global conflicts.

He also criticised the continued reliance on foreign pricing agencies for refined petroleum products, noting that benchmarks such as S&P Global Platts and Argus Media are determined outside the continent.

According to him, this dependence results in unnecessary costs for African countries.

“We are paying premiums that we shouldn’t be paying because of benchmarks set outside our region,” he stated, calling for a review of existing pricing frameworks.

Beyond pricing concerns, the TOR Managing Director emphasised the need for stronger regional collaboration within the petroleum value chain. He urged African countries to prioritise sourcing crude oil from within the sub-region to cut down on expenses related to freight, insurance, and other import-related costs.

Kombat further highlighted the importance of investing in strategic crude reserves, describing crude oil as a more sustainable long-term storage option compared to refined petroleum products.

“As a country, we must invest in strategic stocks, and the best stock to invest in is crude, which can be stored for decades,” he added.