IES believes the policy could create an unfortunate situation for OMCs and industry players
The Institute of Energy Security (IES) says selling oil to selected Oil Marketing Companies (OMCs) under Gold for Oil Policy will only land in the hands of cronies and friends of the government.
According to IES, the move by the government will create an unfortunate situation for OMCs and players in the Petroleum Down-Stream Sector.
The IES caution comes on the back of the National Petroleum Authority (NPA) announcing that it will only sell oil to Oil Marketing Company (OMC) with more than 45 outlets under the Gold for Oil Program.
According to the NPA, the ultimate aim of the government in introducing the program is to ensure that fuel is affordable.
Speaking at the Meet the Press Series Wednesday, the Chief Executive Officer of the NPA, Mustapha Hamid said he had a number of calls asking him why first consignment of the oil could not reflect in prices at the pumps.
But speaking on Starr Today with Joshua Kodjo Mensah on Wednesday after the government’s announcement, the Executive Director for IES, Nana Amoasi VII said the government must reconsider its decision on the mode of selling oil to OMCs under the Gold for Oil policy.
“You brought about 40,000 metric tons just about four weeks ago and that represents just about a week of our national consumption. Can this have an effect on Ghanaians and disposable income of consumers? If you want to have any meaningful impact with that program with the supposedly fuel, then of course you should be covering more than 50 percent of our national demand. But 40,000 metric represents just 10 percent of our monthly demand when we are talking about other products.
“If you are talking about diesel we consume roughly 150,000 metric tons a month. So if you brought 40,000 metric tons in one month and you want to have an impact on the market then of course you may be dreaming. It will not have any impact,” Nana Amoasi VII stated.
He continued: “So cutting some people out and giving the product out to others on selective terms of which we are quite concerned it may land in the hands of cronies and friends of the government. And others may have to struggle or beg to have access just to deviate from the price deregulation regime.”