Ghana: Gold-For-Oil Programme Compelled BDCs To Import Cheaper Fuel-BOST MD

The fuel consignment brought into the West African nation under the ‘Gold for Oil’ programme compelled the Bulk Oil Distribution Companies to negotiate with their fuel suppliers for lower prices, Managing Director for Bulk Oil Storage and Transportation Company Limited (BOST), Edwin Alfred Nii Obodai Provencal, has stated.

According to him, before the implementation of the ‘Gold for Oil’ programme introduced to stem rising fuel prices and depreciation of Ghana’s local currency, the Cedi, BDCs were bringing in products with a premium of US$120 per metric ton.

He said after BOST brought in the first cargo in February 2023 with a premium of US$70 per metric and subsequent cargoes, BDCs were compelled to negotiate with their suppliers for lower prices.

For instance, he said about three weeks ago, BOST brought in products with a premium of US$50 per metric ton, and some BDCs managed to bring in products with a premium of about US$45 per metric ton, which is lower than the premium on the products BOST brought.

“The last time we brought products with a premium of US$50, some BDCs managed to bring products at US$45 premium,” Mr Provencal revealed on Accra-based Oman FM.

According to him, the conditions that persisted when the BDCs were bringing in products at a premium of US$120 per metric ton had not changed and wondered why they are now able to bring in products cheaper.

“How come that some BDCs are sometimes able to bring in products lower than fuel under the ‘Gold for oil’ programme?” he quizzed.

Responding to the comments made by the BOST MD, Dr. Patrick Ofori, who is the CEO of the Chamber of Bulk Distribution Companies (CBOD), commended the government for the introduction of the programme.

He, however, accused the government of skewing the programme in favour of BOST.

Again, he expressed unhappiness about the preferential treatment being given to BOST, saying it is threatening the financial viability of most BDCs.

Source: https://energynewsafrica.com