Dr. Mustapha Abdul-Hamid, NPA Chief Executive
As part of measures to ensure that consumers feel the impact of the Gold for Oil (G4O) programme, as well as address concerns regarding the allocation of products supplied, only oil marketing companies (OMCs) with not less than 45 retail outlets will receive the G40 products.
This decision was reached by the National Petroleum Authority (NPA) in consultation with the Association of Oil Marketing Companies (AOMCs).
It is expected that this criterion will help in the distribution of the next consignment of petroleum products that have been imported under the programme.
Speaking at the Minister’s Press Briefing organised by the Information Ministry yesterday in Accra, the NPA Chief Executive Officer, Dr. Mustapha Abdul-Hamid, disclosed that the criteria took into consideration the top 25 OMCs who distributed petrol and diesel in 2022 with not less than 45 retail outlets across the country.
Better results
He noted that the implementation of the G4O had slightly lowered the prices of petroleum products, and reduced forex risk.
He said the country had received three cargoes so far, comprising 41,000 metric tonnes of diesel in January, and another 40,000MT of diesel and 35,000MT of petrol, which had just arrived and is being discharged, stressing that “better results are expected as more G4O cargoes arrive.”
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 explained that the petroleum downstream dollar demand accounted for 20 percent of national demand.
The NPA boss disclosed that the Bank of Ghana (BoG) commenced a special exchange rate auction programme for the petroleum downstream in April 2022 but could not meet the 100 percent of forex demand in the country.
“Inadequacy of BoG supply pushes BIDECs [Bulk Import, Distribution & Export Companies] to speculate forex rates arbitrarily based on proposed rates from commercial banks,” he said.
To this end, 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 product prices in the interim (Ex-ref price and Ex-pump prices), adding that his outfit had intensified price monitoring activities with penalties for defaulting service providers.
Quality control
Touching on activities undertaken to ensure product quality and integrity, he mentioned the supply of low sulphur fuels (cleaner fuels), a maximum of 50ppm for imports and a maximum of 1500ppm for domestic production.
The Authority 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 uses technology (Electronic Cargo Tracking System (ECTS), National Fuel Monitoring System (NFMS), and the Automatic Tank Gauge system) to ensure the intended delivery of petroleum products along the petroleum downstream value chain.
He mentioned the revocation of licences 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.
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