The Executive Director for Institute for Energy Security (IES), Nana Amoasi (VII), has questioned President Akufo-Addo on how his administration intends to secure reliable and regular sources of petroleum products for Ghanaians.
“The President’s statement or pronouncement on securing reliable and regular sources of fuel supply was without context. He failed to provide the means to achieve that goal. The statement was blank and without clarity,” Nana Amoasi VII said in an interview with energynewsafrica.com.
While addressing Ghanaians on measures taken to address economic hardships in the West African nation on Sunday, President Akufo-Addo said, “Government is working to secure reliable and regular sources of affordable petroleum products for the Ghanaian market.”
The President was optimistic that this step, coupled with a stable currency, would halt the escalation of fuel prices and bring relief to Ghanaians.
However, President Akufo-Addo’s comment appears unsatisfactory in the view of the IES boss.
He said the IES is compelled to ask the President, “How do you hope to achieve that?
“Does the government intend to use state institutions like BOST and TOR to do that? If so, do they have the needed balance sheet to import fuel to the tune of roughly US$400 million on monthly basis? Do managers of these institutions have the competence to manage effectively the funds and the process?
“Does the government intend to use the existing Oil Trading Companies-Bulk Distribution Companies structure to import the adequate quantity of fuel, or it may want to introduce a third party with the requisite fund to that?” he quizzed.
According to him, existing OTCs and BDCs are currently bleeding for obvious reasons—devalued working capital as a result of the cedi’s astronomical depreciation and inadequate supply of the US dollar to meet payment obligations.
“Sourcing the fuels directly from the global refinery market is a near impossibility at a time like this when there’s a widespread shortage of supply outlets.
“If the government intends to source from oil trading companies (OTCs) such as BP, Vitol, and Trafigura, then, it is back to where we are today—confronted with high fuel supply premiums from OTCs, shortage of the required amount of dollars on the domestic forex market, and the consistent depreciation of the Ghana Cedis against the greenback,” he concluded.
Source: https://energynewsafrica.com