Chamber of Bulk Oil Distributors (CBOD)
The Chamber of Bulk Oil Distributors (CBOD) has raised objections against the government's plan to designate the Bulk Energy Storage and Transportation Company (BEST) as the exclusive off-taker for Sentuo Oil Refinery Limited's production under the gold for oil programme (G40).
In a statement, the CBOD expressed concerns that this proposal contradicts the deregulation policy guiding the petroleum downstream sector. The plan aims to indirectly manage USD allocations under the G40 program by channeling Sentuo Oil Refinery's cedi liquidity through BEST to control the exchange rate.
The CBOD argued that while providing the needed USD liquidity under the G40 program is important, anchoring the entire output of Sentuo Oil Refinery Limited with BEST could create market challenges and deficiencies detrimental to the downstream sector's growth.
Moreover, the CBOD cautioned that such a policy proposal undermines the government's commitment to fostering private sector involvement and risks stifling competition within the industry. By granting BEST a dominant market share, the government may create a monopolistic market that could adversely affect both the downstream sector and consumers.
The CBOD urged the government to reconsider its position and establish a framework that encourages active participation from all players in the downstream value chain, including BEST, Bulk Oil Import, Distribution, and Export Companies (BIDECs), and other private entities.
Emphasizing the significant contributions of the BIDEC subsector to national development, the CBOD underscored the importance of collaboration and transparency in developing a workable G40 framework that promotes fair market practices and efficiency in Ghana's downstream petroleum sector.