News Guide Africa

Tag: Oil Marketing Companies (OMCs)

  • Relief at the Pumps: Fuel prices see sharpest drop in months …as easing global conflicts open policy space for Central Bank

    Relief at the Pumps: Fuel prices see sharpest drop in months …as easing global conflicts open policy space for Central Bank

    By Adnan Adams Mohammed 

     

    In a major development for consumers and macroeconomic planners alike, retail fuel prices across Ghana are undergoing their sharpest decline in months.

    The localized drop follows a major de-escalation of international geopolitical conflicts, providing immediate breathing room for household budgets and strengthening the state’s path toward financial stabilization.

    Leading Oil Marketing Companies (OMCs) have aggressively cut pump prices, with petrol falling to GH¢13.87 per litre at major retail stations.

    The downward pricing shift is tied to a plunge in global crude oil benchmarks, which dropped below US$80 a barrel following diplomatic breakthroughs and an unexpected stabilization of tensions between the United States and Iran.

    Global De-escalation Drives the Plunge

    The abrupt reversal of global oil risks has injected fresh optimism into the domestic downstream petroleum sector. Over the past year, international shipping routes and crude production had been severely choked by ongoing conflicts involving major world powers and Middle Eastern nations, artificially inflating freight, logistics, and insurance premium overheads.

    Dr. Riverson Oppong, the Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), voiced strong optimism that this international stabilization will provide sustained, long-term relief to Ghanaian consumers.

    “We are highly optimistic that stabilizing Iran-US tensions and a potential formal agreement could firmly push and sustain crude oil prices below the US$80 mark,” Dr. Oppong stated following a market review. “The localized drop starting this pricing window is a direct reflection of structural ease on the global market. If these international diplomatic gains hold, Ghanaian consumers will continue to enjoy consecutive rounds of relief at the pumps.”

    The Hidden Cost of War

    Despite the celebration surrounding the current price cuts, energy industry advocates note that domestic fuel prices remain heavily burdened by external geopolitical realities.

    Offering a sobering analysis of the structural mechanics behind fuel pricing, Dr. Patrick Ofori, the Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), revealed that without the compounding costs of global conflicts, fuel prices in Ghana would be exponentially lower than current retail figures.

    “If there was no war, and looking at where the Bank of Ghana auction rate stands today, Ghanaians would be buying these petroleum products at around GH¢9 or GH¢10 per litre at the very most,” Dr. Ofori explained. “The geopolitical disruptions over the last year pushed freight rates up five-fold and forced maritime insurance premiums to jump from $3 million to as high as US$17 million for single vessels. While we are happy with the current reduction to GH¢13.87, the reality is that local consumers are still paying an unearned premium due to international instability.”

    Dr. Ofori added that Ghana’s continued exposure to these global market shocks underscores the urgent need for the state to establish long-term funding mechanisms to build a resilient strategic petroleum reserve.

    A Major Victory for the Central Bank’s Disinflation Goal

    Beyond immediate relief for drivers and commercial transport operators, the plummeting cost of fuel serves as a major strategic victory for national monetary policy. High fuel prices have historically served as a rapid pass-through catalyst for food and core inflation across the country.

    Addressing financial stakeholders on the changing economic landscape, the Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, indicated that the easing of Middle East geopolitical risks has arrived at a critical juncture, fundamentally shifting the central bank’s policy horizons.

    “Lower global oil risks may significantly strengthen Ghana’s ongoing disinflation path,” Governor Asiama noted. “The cooling of energy supply shocks improves our baseline inflation outlook and, if these trends are structurally sustained over the coming quarters, it will create vital policy space for the monetary authorities to consider further policy rate easing.”

    With the central bank hinting at a potential lowering of commercial borrowing costs and OMCs signaling room for further pump reductions, the country’s broader business community is expressing rare optimism. If the global energy corridor remains free of active conflicts, the current retail price correction could mark the beginning of a sustained economic turnaround for the country.

     

  • Petrol and LPG Price Floors Rise While Diesel Eases Slightly

    Petrol and LPG Price Floors Rise While Diesel Eases Slightly

    Consumers and commercial transport operators across the country are facing a highly fragmented pricing landscape for the upcoming first pricing window of June.

    According to the latest data and mandatory regulatory updates, the baseline price floors for premium motor spirit (petrol) and Liquefied Petroleum Gas (LPG) are set to tick upward, while automotive gasoil (diesel) consumers will receive minor, short-term relief at the pumps.

    The mixed adjustments reflect the ongoing volatility of finished petroleum products on the international market, combined with shifting local import dynamics under the National Petroleum Authority’s (NPA) price risk management frameworks.

    Global market variables driving the local divergence

    The contrasting pricing movements highlight the complex link between international refined product benchmarks and Ghana’s deregulated downstream procurement structures. Over the past month, global gasoline refining margins and tight supply clusters have driven international petrol costs upward. Concurrently, international diesel inventories have stabilized due to slowing industrial demand across Europe, leading to a marginal easing of bulk import delivery prices.

    Addressing the media on the upcoming adjustments, an energy analyst at the Chamber of Petroleum Consumers (COPEC) noted that while the slight decline in diesel prices is welcome news for industrial logistics and mass transit, the rising costs of petrol and LPG will directly pinch domestic households.

    “What we are witnessing is a clear reflection of localized international product trends,” the COPEC representative explained. “Diesel is easing slightly due to cooling global demand, which will offer some breathing room to heavy transport fleets and haulage operators. However, the upward trajectory for petrol and LPG means that the average commuter and domestic gas consumer will continue to shoulder heavy financial burdens at the retail end.”

    Bulk Distribution Companies navigate regulatory floors

    Under current downstream guidelines, the National Petroleum Authority sets mandatory price floors for every pricing window to prevent predatory pricing, ensure fair competition, and guarantee that Bulk Distribution Companies (BDCs) can recover their core landing and infrastructural costs.

    Speaking on condition of anonymity, an executive director at a prominent downstream oil marketing firm observed that while price floors protect structural stability, they leave Oil Marketing Companies (OMCs) with very little room to offer deeper discounts to consumers.

    “The rising price floors for petrol and LPG mean that no matter how aggressive our internal efficiency drives are, we cannot drop our retail rates below the government-set minimums,” the downstream executive stated. “Our margins are already incredibly compressed. While we welcome the minor relief on diesel, the structural reality is that landing costs for petrol remain stubborn, and the incoming floor updates will force an adjustment at our service stations to maintain commercial viability.”

    Transport unions and consumer groups demand long-term fixes

    The persistence of high retail fuel costs continues to drive broader socio-economic anxieties, given fuel’s role as a primary driver of headline inflation and public transport operating costs. Representatives from the major commercial transport unions have already signaled that while the marginal diesel drop prevents an immediate rise in transport fares, the parallel surge in petrol rates will impact smaller, urban commercial operators who rely heavily on gasoline-powered engines.

    “Any upward movement in petrol affects thousands of urban transport operators who run smaller buses and delivery services,” a regional coordinator for the transport unions remarked. “We are watching the market closely. We urge the government to continuously review the existing tax components on petroleum products so that when international market variables surge, the local consumer is insulated from extreme, unmanageable spikes.”

    With the National Petroleum Authority expected to publish the finalized retail matrices last weekend, OMCs were already recalibrating their digital pump displays to comply with the new statutory baseline floors, leaving the public to brace for a highly bifurcated spending outlook at the pumps.

     

     

     

     

     

     

     

  • Fuel Price Relief: A cushion for consumers, a burden for industry

    Fuel Price Relief: A cushion for consumers, a burden for industry

    By Adnan Adams Mohammed

    In a move designed to buffer Ghanaians against the volatile international oil market, the National Petroleum Authority (NPA) has slashed the price floors for the April 16 pricing window.

    While the decision has forced transport operators to shelve planned fare hikes, industry experts warn that the intervention comes with a GH¢200 million price tag for the government and a mounting debt crisis for private oil companies.

    As at last week, the price of diesel has seen its most significant drop in recent history, falling from GH¢17.10 to GH¢16.10 per litre. Petrol prices followed with a marginal decrease to GH¢13.27. Major retailers, including GOIL and Star Oil, have already adjusted their pumps to reflect these new floors.

    The government’s “necessary sacrifice”

    The intervention, approved by Cabinet, is a direct response to global price hikes fueled by geopolitical tensions in the Middle East. According to the Energy Ministry, the government is absorbing GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol for the next one month period.

    “This will lead to a net loss of about GH¢200 million that could have accrued to the government, but it is a necessary sacrifice to bring relief to the people of Ghana,” stated Richmond Rockson, Spokesperson for the Ministry of Energy.

    This financial cushion was enough to convince transport unions to back down from a proposed 20% increase in fares, providing immediate relief to millions of commuters.

    Industry fears: “We are financing government policy”

    However, the celebration at the pumps is not shared by the Chamber of Oil Marketing Companies (COMAC), Dr. Riverson Oppong, CEO of COMAC, raised the alarm that the relief is being funded through industry operational margins rather than tax cuts.

    “The relief… stems from operational margins of the industry, and it has not touched any tax or levies that go into the government coffers,” Dr. Oppong argued. He warned that Oil Marketing Companies (OMCs) are effectively being forced to pre-finance the government’s social intervention.

    “Is just unfortunate… the downstream business is always receiving the burden for the government; we are the ones always coming to solve problems for the government,” Dr. Oppong added, noting that for every 10 million litres lifted, a company could face over GH¢600,000 in debt due to the delayed reimbursement from the state.

    The lag in economic impact

    While the price at the pump has dropped, the Africa Centre for Energy Policy (ACEP) cautions that the broader cost of living may not fall as quickly. Ben Boakye, Executive Director of ACEP, explained that the “pass-through effect” of fuel prices is notoriously slow.

    “You’re not going to have goods and services reduced or the impact reversed almost immediately,” Boakye noted during a Joy News interview. “Businesses often delay passing on cost reductions because people always want to make a margin. They want to watch this space to see whether they can even keep the same prices.”

    What lies ahead?

    As OMCs begin negotiations with the Ghana Revenue Authority (GRA) for tax payment delays to ease their liquidity crunch, all eyes remain on the Middle East. The current relief measure is set to last only 30 days. If global crude prices remain elevated, the government will face a difficult choice: extend the costly GH¢200 million-a-month subsidy or allow the prices to surge, potentially reigniting the threat of transport strikes and runaway inflation.

     

     

  • NPA moves to end “selective discounts” in fuel market overhaul

    NPA moves to end “selective discounts” in fuel market overhaul

    In a major regulatory pivot aimed at stabilizing the downstream petroleum sector, the National Petroleum Authority (NPA) has officially scrapped discounted fuel pricing, ordering all Oil Marketing Companies (OMCs) to implement uniform pump prices across their respective retail networks.

    The directive, which takes effect on March 16, 2026, effectively ends the “price war” strategies used by major players like Star Oil and state-owned GOIL PLC, who had previously offered selective discounts at specific high-traffic locations to undercut competitors.

    “Competition yes, chaos no”

    Defending the move, Abass Ibrahim Tasunti, Director of Economic Regulation and Planning at the NPA, explained that while Ghana’s market is deregulated, it must not become “disorderly.” Speaking on Joy News’ PM Express, Tasunti emphasized that healthy competition should not “kill the industry.”

    “We are trying to make sure that competition is promoted, but it must be healthy,” Tasunti stated. “Nothing stops OMCs from being competitive, but they must maintain a uniform price across their retail outlets.”

    The role of the Unified Petroleum Price Fund (UPPF)

    The core of the NPA’s argument for uniform pricing lies in the Unified Petroleum Price Fund.. This mechanism ensures that the cost of transporting fuel from depots to distant regions is equalized.

    Because the fund not the individual OMC covers transportation costs, the regulator insists that a consumer in Wa or Akokobi should pay exactly the same price as a consumer in Accra or Tema for the same brand of fuel.

    “Oil marketing companies do not pay for that transportation cost out of pocket; they submit claims for us to pay,” Tasunti explained. “Therefore, an OMC cannot justify charging different prices within the same network.”

    Daily flexibility, but no more “selective” cuts

    The new guidelines do not return Ghana to fixed pricing. Under reforms introduced in 2024, OMCs remain free to adjust their prices on a daily basis rather than waiting for the end of a two-week pricing window.

    However, the “catch” is two-fold:

    1. Uniformity: If a company cuts its price, that cut must apply to every station under its brand nationwide.

    2. Transparency: Companies must notify the NPA 24 hours in advance before any price revision.

    Industry reaction: A level playing field?

    The move is expected to hit “low-cost” leaders like Star Oil the hardest. Under the previous 2024 guidelines, stations were allowed to offer discounts of up to 2% off the prevailing ex-pump price. Sources at Star Oil indicated that while they have performed well under both regimes, there are concerns about whether smaller, lesser-known OMCs will follow the rules or continue to “price-cheat” at remote locations.

    The NPA has warned of severe sanctions for any operator found violating the revised guidelines after the March 16 deadline. A high-level meeting between the regulator and industry players is scheduled for Wednesday, March 11, to iron out implementation hurdles.

    The New Fuel Pricing Rules (Effective March 16, 2026)

    Feature Previous Regime (2024) New Framework (2026)

    Discounting Selective (up to 2% allowed) Banned; Uniform pump prices only

    Pricing Logic Location-based allowed Network-wide uniformity required

    Adjustment Frequency Daily (with notification) Daily (with notification)

    Enforcement Market-led Regulatory sanctions & monitoring

    Industry pushback and compliance concerns

    Major players like Star Oil, which had successfully used selective discounts as a growth strategy, are reportedly unfazed by the shift in profitability but wary of enforcement. Sources within the industry expressed concern that “lesser-known OMCs” might continue to ignore the guidelines, as they did under previous regimes.

    The NPA has fired a warning shot at potential violators, promising severe sanctions for any company found applying location-based discounts or failing to follow the new pricing formula.

    The New Fuel Pricing Framework (Effective March 16)

    Feature Old Practice New Directive

    Price Consistency Discounts allowed at specific stations Uniform price across all brand outlets

    Price Revisions Fixed for the 2-week window Daily revisions allowed (with notice)

    Transportation Subsidized by UPPF Subsidized by UPPF (strictly enforced)

    Selective Discounts Up to 2% allowed Scrapped entirely

     

     

     

     

     

     

     

     

     

     

     

  • NPA allays fuel shortage fears amid global volatility …as Govt reviews contingency plans

    NPA allays fuel shortage fears amid global volatility …as Govt reviews contingency plans

    By Adnan Adams Mohammed

    The National Petroleum Authority (NPA) has moved to reassure the Ghanaian public of a stable fuel supply, downplaying fears of a potential shortage despite escalating geopolitical tensions in the Middle East and increased volatility in global oil markets.

    Speaking on JoyNews’ The Probe on Sunday, March 1, 2026, the Director of Economic Regulation and Planning at the NPA, Abass Ibrahim Tasunti, confirmed that the country holds a robust buffer of petroleum products, capable of cushioning consumers for several weeks.

    National Stock Levels: A Seven-Week Safety Net

    According to the latest monitoring data from the NPA, Ghana’s current fuel reserves are at a comfortable level:

    ● Petrol: Approximately 6.8 weeks of supply.

    ● Diesel: Over 5.3 weeks of supply.

    Mr. Tasunti emphasized that these reserves are not a panicked reaction to recent regional conflicts including the blockade of the Strait of Hormuz but are the result of the NPA’s routine mandate to ensure energy security.

    “We have a plan where almost every day, petroleum products are being discharged,” Mr. Tasunti explained. He further noted that the Sentuo Oil Refinery, which has been operational since June 2025, and the Atuabo Gas Processing Plant are consistently adding to domestic stocks, reducing total reliance on international imports.

    Contingency Plans and the “Mindset Shift”

    The NPA’s assurance comes as the government initiates a broader review of its economic contingency plans. A key pillar of this strategy involves a proposed revision to the Ghana Petroleum Funds (GPF) investment policy.

    Under the “Resetting for Growth” agenda, the administration is seeking to move away from “passive savings” in offshore accounts toward “productive investment” in domestic energy infrastructure. This shift aims to create a more resilient energy sector that can better withstand price shocks and supply disruptions.

    Price vs. Availability: The Reality for Consumers

    While the NPA has guaranteed availability, it warned that as a net importer, Ghana remains a “price taker” on the global stage.

    Global crude prices recently surged past $91 per barrel, and the NPA has already adjusted price floors for the first window of March 2026. Industry experts, including Duncan Amoah of the Chamber of Petroleum Consumers (COPEC), have cautioned that while the pumps may not run dry, consumers should prepare for marginal price increases as private traders factor in the rising cost of future cargoes.

    Strategic Resilience

    To further stabilize the market, the NPA is stepping up its monitoring of Oil Marketing Companies (OMCs) to ensure that pump prices reflect approved regulatory guidelines rather than speculative hikes.

    As of early March, several vessels carrying fresh petrol and diesel cargoes were already at the Tema anchorage awaiting discharge, with more imports scheduled through April. The government maintains that these proactive measures will ensure the “wheels of the economy” continue to turn, even as global uncertainties persist.

     

     

     

     

  • Analysis: The David vs. Goliath Struggle in Ghana’s Fuel Market

    Analysis: The David vs. Goliath Struggle in Ghana’s Fuel Market

    By Adnan Adams Mohammed, Financial and Economist Journalist

    As the “Tigers and Lions”, Star Oil and GOIL, engage in a high-stakes price war, the ripples are being felt most acutely by the nearly 200 smaller Oil Marketing Companies (OMCs) that populate the fringes of the Ghanaian market.

    While the headlines focus on the drama at the top, a quiet crisis of sustainability is brewing for the “Davids” of the industry.

    Here is an analysis of how this price war could reshape the landscape for smaller players in the coming months.

    1. The Margin Squeeze: No Room to Breathe

    For large players like Star Oil, scale is a weapon. With an 805% growth rate over the last five years and advanced automation to curb forecourt losses, they can afford to operate on razor-thin margins. Smaller OMCs, however, often face higher overheads per liter sold.

    The Procurement Gap:

    Smaller firms lack the massive credit lines of the giants (often capped below US$3 million), meaning they pay 2% to 4% more to Bulk Distribution Companies (BDCs) for their product.

    The Price Trap:

    When the market leaders drop petrol to GH¢9.97, smaller players are forced to follow suit to keep their pumps running. Without the same efficiency, they aren’t just cutting profit—they are often cutting into the capital needed to buy their next load of fuel.

    2. The Threat of “Station Cannibalization”

    The price war is currently focused on high-traffic urban centers like Accra and Kumasi. In these areas, consumers are incredibly price-sensitive, often switching stations for a difference of just 2 pesewas.

    Short-term:

    Smaller OMCs may see a sharp drop in volume as loyal customers migrate to “discount stations.”

    Long-term:

    Industry analysts predict a wave of acquisitions. If small operators cannot break even over the next three pricing windows (roughly 45 days), many may be forced to lease their prime-location stations to the very giants they are currently fighting.

    3. The Rural Fallout

    While urban consumers benefit from the war, the “last mile” of Ghana’s fuel supply is at risk. Small OMCs are the backbone of rural fuel security, operating where the big brands find it unprofitable to go. “If the price war drives small players out of business, we won’t just see higher prices in the long run we’ll see ‘fuel deserts’ in rural Ghana where no one is left to serve the farmer or the local transport operator,” warns an analyst from the Institute for Energy Security (IES).

    4. Regulatory Tug-of-War: The Price Floor “Shield”

    The National Petroleum Authority (NPA) and COMAC maintain that the price floor is the only thing standing between the current market and total consolidation.

    Outcome Impact on Small OMCs

    Floor Maintained: Provides a “minimum safety net” that prevents giants from selling below cost to intentionally kill competition.

    Floor Scrapped: Could lead to a “race to the bottom” where only the top 5–10 companies survive, leading to an oligopoly.

    The Verdict: A Looming Shake-up

    The coming months will likely be a “survival of the fittest” period. We can expect:

    Consolidation: The number of active OMCs (currently around 210) could drop significantly by the end of 2026 as smaller firms merge to survive.

    Service Diversification: Small OMCs may stop competing on price and pivot to “niche” value, such as better customer service or loyalty programs, to retain local footprints.

    Adnan Adams Mohammed is a Financial and Economist Journalist

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Fuel Price Cuts Spark Call for Transport Fare Reductions

    Fuel Price Cuts Spark Call for Transport Fare Reductions

    By Adnan Adams Mohammed

     

    The Ghana petroleum market is witnessing heightened competition and a welcome drop in fuel prices, a trend that is now putting pressure on commercial transport operators to reduce fares for consumers.

    The Chamber of Petroleum Consumers (COPEC) is leading the charge, urging all commercial transporters, including major ride-hailing services like Bolt, Uber, and Yango, to immediately review and adjust their fares in line with the recent reductions in ex-pump prices. The move is aimed at passing on the benefits of easing cost pressures to the general public.

     

    COPEC’s Executive Secretary, Duncan Amoah, in a statement, pointed to the downward adjustments in pump prices by some oil marketing companies within the current pricing window.

    The Chamber said the reductions are consistent with movements in international refined petroleum prices, relative stability in the exchange rate, and heightened competition within Ghana’s deregulated downstream petroleum market.

    COPEC’s year-on-year assessment further shows that consumers are recording significant savings under the current pricing window, with petrol and diesel prices down by between GH¢3 and GH¢4 per litre compared with January 2025.

    “In this regard, COPEC calls on OMCs that have not yet reviewed prices within the current window to do so promptly, ensuring pump prices reflect prevailing market conditions and serve the broader interest of consumers.

    “Consumers must not be denied the benefit of price reductions when international and local market conditions become favourable,” the statement concluded.

    A Market Correction

    The recent price adjustments by Oil Marketing Companies (OMCs) are a result of several favourable factors: stability in the cedi’s exchange rate, movements in international refined petroleum prices, and intensified competition within Ghana’s deregulated downstream sector.

     

    Market leader Star Oil initiated significant cuts this week, with a litre of petrol now selling for as low as GH¢10.56 (and promotional discounts down to GH¢10.36), and diesel at GH¢11.56. State-owned GOIL has followed suit, with petrol priced at GH¢10.99.

     

    This marks a significant improvement from January 2025, with COPEC highlighting year-on-year savings of between GH¢3 and GH¢4 per litre for consumers.

    “Consumers must not be denied the benefit of price reductions when international and local market conditions become favourable,” stated Duncan Amoah, Executive Secretary of COPEC.

     

    The Push for Consumer Relief

    COPEC commended the proactive OMCs but stressed that fair and responsive fuel pricing is essential to alleviating financial pressures on households and businesses. The organisation is now focusing its attention on the transport sector.

    Current pump prices indicate significant variations across OMCs, with a price difference of over 10% between the lowest and highest priced petrol.

    Company    Petrol  (per litre)          Diesel (per litre)

    Star Oil          GH¢10.56                       GH¢11.56

    GOIL              GH¢10.99                    GH¢11.96

    TotalEnergies/Shell GH¢11.68       GH¢12.38

    PETROSOL                 GH¢11.65        GH¢12.35

     

    The call for fare reductions echoes a similar situation in May of last year, when transport fares dropped by 15% following negotiations between operators and the Ministry of Transport, leveraging the cedi’s appreciation at the time.

     

    As OMCs continue to cut prices amid rising competition, the pressure mounts on transport unions and ride-hailing platforms to translate these savings into lower fares, ensuring the benefits of improved market conditions reach the everyday Ghanaian consumer.

     

  • ‘Gold for Oil’ deal suffers critical scrutiny…gov’t told to take a second look at it

    Adnan Adams Mohammed

     

    The ‘Gold for Oil’ policy has faced critical scrutiny by stakeholders challenging the government’s white wash claims that the policy as implemented has been a success.

     

    Newest to add his voice to the critics is an Energy Strategist who is advising government to take a second look at the ‘Gold for Oil’ Programme as it has not impacted on prices of petroleum products at the pumps.

     

    Last week, some Oil Marketing Companies withdrew from the programme due to unresolved concerns. The government’s gold for oil policy as a government strategy was borne out of the country becoming strapped of foreign exchange. The policy is to enable the government directly exchange gold for oil while avoiding to use foreign currency, particularly the dollar, as a means to control the country’s inflation. The Strategist, who believes the intended purpose of the policy has not been achieved, wants a review of the programme.

     

    “The problem is that it’s not being able to stabilise the cedi that we want to stabilise. At best maybe it has minimised the depreciation rate and that’s not what we wanted”, Dr Yussif Sulemana pointed out to the managers of the economy.

     

    “It’s quite unfortunate and the champions of the programme will have to relook at it and look at the successes and weigh against what we are trading on”.

     

    He quizzed “Are we ready to disturb these institutions [OMCs] just to stabilise the cedi that we are not able to have a firm handle on?”

     

    “At this point in time and in that case, I think the programme needs to be reviewed and if it cannot be reviewed, then we have to just advise ourselves”, he added.

     

    Also, some Civil Society Organisations (CSOs) in the energy sector have challenged government to publish the names of third-party dealers involved in the ‘Gold for Oil’ programme.

     

    The call comes after some Oil Marketing Companies pulled out of the programme due to unresolved concerns.

     

    The Ghana Chamber of Bulk Oil Distributors has announced that some of its members are also unhappy with concerns raised on the implementation of the programme.

     

    Energy Analyst, and Co-Chair of the Ghana Extractive Industries Transparency Initiative, Dr Steve Manteaw said the government must publish the names of all intermediary dealers in the programme to promote transparency.

     

    He added that the current mode of the programme creates room for some operators to take advantage of the system.

     

    “There is no disclosure in terms of who is financing the domestic gold purchasing in this transaction. We are going to resort to the services of a third party. For instance, who is selling Ghana’s gold? if it’s a broker then the broker services have to be disclosed”.

     

    Dr Manteaw stated lack of transparency will encourage corrupt acts that may defeat the purpose of the programme.

     

    “I think it’s fair to ask questions. How much is the broker being paid and how does it affect what we receive as a country in terms of reserves”, he quizzed.

     

    In recent publication, a key player in the extractive industry, the Chairman of Ghana Chamber of Bulk Oil Distributors, Dr. Patrick Kwaku Ofori, says the government’s gold for oil policy has cornered bulk oil distributors working in the country.

     

    Noting that, none of the BDCs had anticipated such a policy as it places them in a tight spot in competition against the government.

     

    Dr. Ofori, speaking in an interview indicated that, the policy will have a toll on the regulators’ revenue generation, “because none of the BDCs or those BDCs who have paid their license fee did not necessarily pay for a license fee to be cornered a percentage of the matter.”

     

    “They want to be given the right climate to conduct their business. And also don’t forget these private entities also employ Ghanaians and they also pay their taxes.

     

    “So it’s a bit of a tricky situation there, and the programme obviously impacted on private sector participation judging from how private sector can also assess the proceeds of the revenue coming from the gold purchases.”

     

    He however suggested that government could change their policy to allow private sector engagement.

     

    “But if government intends to change their policy with regards to the gold for oil and allow private sector participation and say that ‘well as a country, all our revenue that we’re going to generate from maybe gold export, we’re going to use maybe a percentage of it to finance our refined product importation .

     

    “And by so doing, either through the Central Bank reactivating the forex option so that both the private sector and the public entities who are interested in importing refined products can go through those competitive processes to be able to have the product.’”

     

    He also stated that another option was for the Bank of Ghana to surrender all gold proceeds and revenue in a way to guarantee forex availability to the commercial banks for all importers to have access to them.

     

     

     

     

  • NPA and AOMCs agree on criteria to share G4O consignment

    NPA and AOMCs agree on criteria to share G4O consignment

    Adnan Adams Mohammed

     

    The National Petroleum Authority (NPA) in consultation with the Association of Oil Marketing Companies (AOMCs) has devised an effective method to share arriving consignments of refined petroleum products trading under the Gold for Oil (G4O) programme.

     

    The two parties agreed that, for the gains (reduced fuel prices) of the programme to be felt across the country, OMCs with less than 45 sales outlets will not receive share of the consignments.

     

    The new method agreed is to also address concerns of the AOMCs regarding a lack of clarity regarding the allocation of products supplied under the programme to its members. The sharing criteria take into consideration the top 25 OMCs that distributed petrol and diesel in 2022 with not less than 45 retail outlets across the country.

     

    “Better results are expected as more G4O cargoes arrive”, Dr Mustapha Abdul-Hamid, CEO of NPA  said when speaking at the meet-the-press series in Accra last week.

     

    The NPA Boss noted that, the country had received three cargoes so far, comprising 41,000 metric tonnes (MT) of diesel in January, and another 40,000MT of diesel and 35,000MT of petrol which has just arrived and being discharged.

     

    The implementation of the  G4O has slightly lowered the prices of petroleum products and reduced forex risk.

     

    The meet-the-press under the auspices of the Ministry of Information that featured the NPA, focused on developments in the downstream petroleum industry on the theme: “Petroleum Downstream: Retrospect and Prospect.”

     

    Tracing the situation before the implementation of the G4O programme, Dr Abdul-Hamid said average monthly petroleum product import bill ranged from $350 million to $400 million.

     

    He said the petroleum downstream dollar demand accounted for 20 percent of national demand.

     

    The NPA Boss noted that Bank of Ghana (BoG) commenced a special exchange rate auction programme for the petroleum downstream in April 2022, and indicated that the special auction programme could not meet 100 percent of forex demand in the country.

     

    “Inadequacy of BoG supply pushes BIDECs to speculate forex rates arbitrarily based on proposed rates from commercial banks”, he said, and explained that the gold payment was mooted as a solution to the pressure that petroleum downstream put on the cedi.

     

    Dr. Abdul-Hamid said the NPA regulates G40 products prices on the interim (Ex-ref price and Ex-pump prices).

     

    He stated that the Authority had intensified price monitoring activities with penalties for defaulting service providers.

     

    Touching on activities undertaken to ensure product quality and integrity, the NPA Boss mentioned the supply of low sulphur fuels (cleaner fuels), a maximum of 50ppm for imports and a maximum of 1500ppm for domestic production.

     

    The NPA also undertakes periodic petroleum product monitoring exercises, conducts fuel marker monitoring and quality monitoring of fuel standards (Quality Control) including checking of water in fuel and collaborates with security agencies to prevent illegal imports, exports and product dumping.

     

    Dr Abdul-Hamid said the Authority used technology (Electronic Cargo Tracking System (ECTS), National Fuel Monitoring System (NFMS) and the Automatic Tank Gauge system) to ensure intended delivery of petroleum products along the petroleum downstream value chain.

     

    He mentioned the revocation of licenses and publication of the names of defaulting Petroleum Service Providers (PSPs) and Laycans allocation and monitoring to ensure adequate supply as some of the activities undertaken to ensure order in the downstream petroleum industry.

  • Fuel price reducedas predicted

    Fuel price reducedas predicted

    Adnan Adams Mohammed

    Fuel prices at the pumps have started coming down although slower than expectations of some downstream petroleum sector think-tanks.

    GOIL, a market leader, reduced the pump prices for Diesel to GH₵19.77Petrol toGH₵16.26, this translate into about 3.5 percent reduction.

    Although, the reductions were predicted in previous week by the Institute for Energy Security, the current reduction is slower than the rates it predicted.  IES predicted rates of about 13.45% in petrol,  11.63% in diesel, and 1.88% in LPG prices.   

    “Prices of the various finished products will be affected by the 13.45% fall in the price of gasoline [petrol], the 11.63% fall in the price of gasoil [diesel], and the 1.88% fall in the price of LPG.

    However, the IES said the price of Liquefied Petroleum Gas (LPG), is however expected to remain stable on account of the cedi’s depreciation.

    The 3.09% depreciation of the cedi against the US dollar is expected to erode portions of the gains from the reductions in international fuel prices. The price of LPG is however expected to remain stable on account of the cedi’s depreciation”, the IES said.

    Condequently, the Chamber of the Bulk Oil distributors has linked the reductions to improved supply of dollars from the Bank of Ghana and moves by the regulator to improve the liquidity of commercial banks.

    This has helped improved lending to importers of petroleum products.  

    On the international market, Brent crude saw a 6.31% decrease in price over the previous window’s average price of $95.11 per barrel to the present average price of $89.11 per barrel.