Ghana: Nuclear Power Plant Is Needed For Reliable Electricity-Energynewsafrica.com Managing EditorPer a document sighted by energynewsafrica.com which details the payment plan, Ameri has indicated its willingness to waive over US$2 million of the cost if government settles the remaining amount on time. The source told energynewsafrica.com that Ameri power plant has been shutdown because the five years period was due in January this year. According to the source, an independent engineer has been appointed and is currently assessing the condition of the plant after which the plant would be transferred to the Government of Ghana. The source said the Government of Ghana would bear half of the cost of the assessment while owners of the power plant would bear the remaining cost. The Government of Ghana has hinted of plans to relocate the Ameri plant from its current location in Aboadze to Kumasi in the Ashanti Region in a bid to stabilise the country’s national grid. Source: www.energynewsafrica.com
Ghana: Gov’t Settles Almost 90% Of Ameri Power Debt
The Government of Ghana has settled almost 90 percent of the total cost of the 250 Megawatts Ameri power plant procured from UAE-based Africa & Middle East Resources Investment Group, energynewsafrica.com can report.
The Ameri power plant was procured in 2015 by the previous administration when the West African nation was experiencing erratic power supply due to shortfall in electricity generation.
The plant cost US$510 million and it was to be managed by it owners for a period of five years and transferred to the Government of Ghana under Build Own Operate and Transfer (BOOT) agreement.
The Ameri deal was one of the numbers of power deals signed under the past administration which generated public anger with the then opposition New Patriotic Party accusing that administration of ripping off the nation.
Speaking to energynewsafrica.com, a source at the country’s Ministry of Energy disclosed that a little over US$447 million out of the total figure of US$ $510 million has been paid, representing about 87 percent as at November 2020.
“Government is paying and as we speak, we have written to the Finance Ministry to pay three months of the remaining debt which was deferred to be paid later,” the source said.
Without Flexibility, Nigeria Will Face Difficulties Integrating Large Amounts Of Renewable Energy Into The Grid (Opinion)
By Yusuff Wale
As the largest economy in Africa, with huge gas reserves and high solar energy potential, Nigeria has all the natural resources necessary to meet the growing demand for electricity. However, the inadequate energy infrastructure still leaves a significant part of the population without power or relying on oil-fired back-up generators. If Nigeria can improve its energy infrastructure and unlock its gas-to-power generation potential, it paves the way to integrating low-cost renewable energy, bringing electricity and development opportunities to rural villages, driving industrial growth and employment, and increasing prosperity across the country.
There is no doubt that gas has an important role to play in meeting Nigeria’s electricity demand, but to achieve this, there is an urgent need to reform the gas and electricity sectors. The poor condition of the gas transmission and distribution system is a major constraint as domestic supply shortages and insufficient pressure severely affect the reliability of the power supply. Poor planning has resulted in stranded generation assets and transmission bottlenecks. Inadequate maintenance of an aging and inefficient infrastructure means that peak generation is well below its full potential. Without structural reforms and integrated energy planning, the ability to meet the growing electricity demand is challenging.
However, advanced power system modelling, which helps to identify the lowest total cost energy solution while considering system constraints, shows that Nigeria is indeed in a position to achieve its ambitious targets by 2030. By developing a balanced thermal portfolio combining baseload gas and flexible gas power generation, the power system will be capable of integrating a high level of renewables and operating efficiently. But significant flexibility needs to be built into the power grid, to make it capable of responding to daily variations in demand and withstanding the intermittent nature of renewables.
Not All Gas Fired Power Plants Are The Same
Even if from a pure cost perspective, reciprocating gas engine and combined cycle gas turbine technologies offer comparable results, gas engine technology adapts faster to balance the intermittency and unpredictability that characterise addition of renewables into the power generation mix and thus facilitate their growth and integration into the system. In addition to being robust and versatile to manage the current generation and transmission side disturbances in an efficient manner, there are three important advantages that ICE technology offers for the future; the first is flexibility, the ability to quickly adjust load in response to supply fluctuations from renewables; the second is modularity, gas engine plants can be sized to requirements, for a city, for manufacturing industries, or for local micro-grids; and the third is low water consumption, which is an important consideration in view of Nigeria’s long dry seasons.
To maintain a balanced system, flexible forms of electricity must be available to ramp up output at the same rate that wind or solar output fluctuates. Systems need to respond across different timeframes, from seconds, to minutes. This is not the case for conventional power plants based on combined cycle gas turbine technology which can take several hours to reach operation at full capacity. Even if gas turbines can provide some level of flexibility by being run at partial load, this mode of operation is inefficient, driving up costs and carbon emissions.
On the other hand, flexible gas engine power plants are the perfect ally of renewable energies. Made up of multiple engines which can be fired-up instantaneously, these plants offer a large range in power supply availability which complements renewable energy without sacrificing efficiency. If a sudden rainstorm, for example, cuts the supply of solar energy and drives up electricity demand as lights are switched on, a number of internal combustion engines can be turned on within minutes to supply the required electric demand. They can be turned off just as quickly when the storm passes.
Expert studies conducted around the world show that flexible power plants based on internal combustion engine technology can unlock the full potential of renewable energy assets in the fleet, generating annual cost savings above 5%, reducing CO2 emissions, as well as reducing overall water consumption. Indeed, flexible power plants consume nearly 50% less water than similarly sized combined cycle gas turbine plants and 75% to 85% less water than a coal or nuclear plant with cooling towers. In a context of global warming and hydric stress, water consumption is a parameter that cannot be ignored.
For the country to successfully integrate the planned addition of ~3,5 GW of Hydro and ~5.2 GW of solar projects into the grid by 3030 and increase access to affordable and reliable electricity, a balanced power generation mix will be required. Gas is abundant, affordable, and offers a clear solution to meet the growing power demand in Nigeria. But most important is the need for long-term integrated energy planning. By deploying an integrated energy strategy with a focus on flexibility, Nigeria has what it takes to achieve a successful energy transition. Without it, Nigeria’s power sector will most likely remain inefficient and unreliable.
Yusuff Wale is the Managing Director, Wartsila Marine & Power Services Nigeria Ltd. Wartsila is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. He is a seasoned professional in Management, Sales, Marketing and Business Development in the Nigerian Oil and Gas and Power Industry. He started his career as a process engineer in one of the Nigerian Petroleum Oil Refineries. Over the years, he has been actively involved in large transactions of Turbo-Machineries into major FPSO projects in Nigeria as well as Internal combustion engines for both Industrial and Captive Independent Power Plants. He has presented technical papers at both local and international Oil, Gas and Power Conferences. He holds a MSc. and Bachelor of Engineering degrees in Chemical Engineering from the prestigious University of Lagos and Federal University of Technology, Minna, respectively and a miniMBA in Innovation, Growth & Digital Execution techniques for building category king companies, from the Tekedia Institute. He has attended many trainings both in Nigeria and abroad. He is a corporate member, Nigeria Society of Engineers (MNSE).
New Report Shows Cities Across Africa Demonstrate Progressive Leadership To Deploy Renewables
The 2021 edition of REN21’s Renewables in Cities Global Status Report, has shown that one billion people live in cities with a renewable energy target or policy.
The number of cities that have enforced partial or complete bans on fossil fuels jumped fivefold in 2020. With a special focus on Sub-Saharan Africa, the report shows that despite many challenges, city governments across the region have taken important steps to advance the deployment of renewables.
Africa’s urban population increased more than 16-fold between 1950 and 2018, from 33 million to 548 million, and this rapid urban growth has been and remains a key driver of rising energy demand. Cities across Sub-Saharan Africa increasingly recognise the opportunities around renewable energy use to improve energy access, reduce energy poverty as well as boosting the resilience and reliability of existing power systems.
City governments play a key role in shaping the energy landscape. At least 19 cities, including Cape Town (South Africa) and Kampala (Uganda) have renewable energy targets in place, and 34 cities have policies. Many cities in the region have joined global clean energy initiatives. For example, signatories to the Covenant of Mayors in Sub-Saharan Africa (CoM SSA)[1] have voluntarily committed to implementing climate and energy actions in their communities. The Climate Action Planning Africa Programme, led by C40 Cities, brings together 11 megacities in Sub-Saharan Africa that have pledged to become net-zero carbon by 2050.
Locally Driven Ambitions Have Led To Positive Outcomes
The report highlights the achievements of five very different and representative cities: Cape Town (South Africa), Dakar (Senegal), Kampala (Uganda), Tsévié (Togo) and Youndé IV (Cameroon).
The City of Cape Town has been a pioneer in providing more affordable and secure energy access and in reducing the city’s carbon footprint. In 2017, the City entered into a court challenge with the national government to enable it to purchase electricity from independent power producers (IPPs) and not be confined to procuring coal-fired power from Eskom. By 2019, Cape Town had the highest concentration of registered rooftop solar PV systems nationwide.
Dakar is home to 50% of Senegal’s urban population. Under the C40 Cities Leadership Programme, Dakar is committed to be net-zero carbon by 2050. The City’s transport plan articulates three ambitious infrastructure projects –train, bus and on-road transport – with a common goal of increasing the share of electrification and reducing fossil fuel dependence across these three transport modes while also reducing air pollution by 2030.
Kampala’s energy demand is dominated by the transport sector with inefficient transport modes driving up the city’s congestion. The SMART mobility program has enabled successful public-private partnerships, which in 2020 resulted in the use of more than 200 new and retrofitted electric motorcycles for public transport. The rise of electric mobility in Kampala is a strong example of how such relationships can be leveraged to advance the renewable energy agenda at a city level.
Tsévié has implemented a three-year municipal energy programme to boost local energy access and development. Under this flagship programme, the municipality aims to achieve its sustainability ambitions in four strategic areas: 1) sustainable biomass use, 2) deployment of distributed rooftop solar PV, 3) increased adoption of electric motorcycles and 4) a modal shift to public transport.
The city of Yaoundé IV rolled out a pilot project in 2019 to switch households from using LPG to biogas, thereby reducing greenhouse gas emissions. The success of the project has paved the way for similar programmes, notably ENERGIE PLUS, which seeks to build an industrial scale biogas plant to supply electricity to Yaoundé IV and its environs.
Low-Cost Renewable Energy Can Be A Key Lever To Power Economic Growth
In addition to providing Sub-Saharan African cities with greater access to modern energy services, renewables also offer important co-benefits such as reducing air pollution, mitigating climate change, creating more liveable urban areas and enabling a better quality of life through increased access to basic services. However, municipal governments in the region face numerous barriers to the deployment of renewables. Key challenges include policy and regulation, underdeveloped grids and infrastructure, unstable off-taker arrangements, access to financial markets, data needs and technical capacity.
Although city authorities in Sub-Saharan Africa may have limited influence over infrastructure and services, they can all take action to encourage local renewable energy deployment. Developing low-carbon pathways requires multiple collaborations across a broad range of stakeholders, including national policy makers. As the five case studies illustrate, progressive leadership has produced positive outcomes for renewable energy deployment.
Source: www.energynewsafica.com
Gasoline Demand May Never Fully Recover-IEA
Global gasoline may have peaked, thanks to fuel efficiency gains and the growing popularity of electric vehicles, the International Energy Agency said in a new report, noting that these trends offset growth in mobility in emerging economies.
The report, which looks at the next five years, also suggests peak oil demand may be near, thanks to stronger government policies—if they materialize—in favor of renewable energy, and behavioral changes.
“The Covid-19 crisis caused a historic decline in global oil demand – but not necessarily a lasting one,” IEA’s chief, Fatih Birol, said.
“Achieving an orderly transition away from oil is essential to meet climate goals, but it will require major policy changes from governments as well as accelerated behavioural changes. Without that, global oil demand is set to increase every year between now and 2026.”
In the absence of stronger energy policies, the IEA projects global oil demand growth of some 10 million bpd by 2026, half of which would come from the Middle East from shut-in capacity. This would once again increase OPEC’s clout on international markets at the expense of U.S. shale drillers, who need higher oil prices before they return to production growth.
Some of the additional supply of oil that will be needed will have to come from new production capacity, however.
According to the IEA, this new production capacity is around 5 million bpd.
There is no rush, however, because right now, amid the pandemic, there is some 9 million bpd in spare oil production capacity, the agency noted.
Even with demand for oil on the rise, however, no part of the industry will remain untouched by the energy transition, Birol said.
“No oil and gas company will be unaffected by clean energy transitions, so every part of the industry needs to consider how to respond as momentum builds behind the world’s drive for net-zero emissions,” he said, noting things like carbon capture and methane emission reduction among the biggest issues facing the fossil fuel industry.
Source: Oilprice.com
Ghana: GRIDCo Undertakes Exercise To Stabilise Power Supply In Volta Region
Ghana’s power transmission company, Ghana Grid Company, has stepped up efforts in strengthening its transmission line in the country, especially in the Volta Region, to ensure stability of power supply in the region.
Currently, GRIDCo is undertaking works on the 22T2 Power Transformer radiators at the Asiekpe Bulk Supply Point.
The Director for Southern Network Services, Daniel Amartey visited the site at Asiekpe on Friday to inspect the ongoing work.
Source: www.energynewsafrica.com
“This project will bring supply stability to parts of the Volta Region,” GRIDCo said in a tweet on Friday. GRIDCo on Thursday requested ECG to interrupt power supply in the Volta Region from March 18 to 21, to enable them undertake repair works on their transformer that supplies power to both Volta and Oti Regions.Our Southern Network Services Director, Daniel Amartey, made a quick dash to the Asiekpe substation this morning to inspect ongoing works on the 22T2 Power transformer radiators. This project will bring power supply stability to parts of the Volta Region. pic.twitter.com/ErC9v147Y9
— Ghana Grid Company (@GhGridCo) March 19, 2021
Source: www.energynewsafrica.com
Ghana: Women Must Challenge Themselves To Advance- Patience Akyianu
The award-winning Group Chief Executive Officer of Hollard Ghana, Mrs. Patience Akyianu has said that the greatest barrier to women leadership is the mind as she challenged women to rise above demotivating perceptions such as gender stereotypes.
“Women have so much to bring to the table. Our greatest barrier to leadership is the mind. Let’s push above the unconscious bias and be intentional in dealing with the consequences of it,” she advised.
Mrs. Akyianu was speaking at the commemoration of International Women’s Day by Vivo Energy Ghana, the marketers and distributors of Shell branded products and services at a virtual ceremony in Accra.
Speaking on the theme, “Women in leadership: Achieving an equal future in a COVID-19 world”, Mrs. Akyianu said conversations on gender equality should focus on how women can flourish under any circumstance.
According to her, gender equality is achievable when individuals change their perceptions and #ChooseToChallenge the status quo.”
Achieving an equal future in a covid-19 world would require women to invest and acquire skills that will position them competitively, be tech-savvy, visionary, ready to sacrifice their comfort zones and be strategic leaders.
“When you flawlessly execute, gender does not matter”, says Mrs. Akyianu.
The Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara re-echoed his call for more women in leadership roles. He said women are transformational leaders who are able to turnaround challenging situations and should be encouraged to aspire to the top.
He acknowledged that there may be challenges hindering the growth of some women into leadership positions. However, women must challenge perceptions that demotivate them from aspiring to the top.
“I encourage them to stay confident and trust in their capabilities”, adding that “failure is part of success; when you fail, you learn and grow,” he said.
International Women’s Day is celebrated in many countries around the world. It is a day when women are recognized for their achievements without regard to divisions, whether national, ethnic, linguistic, cultural, economic or political. Since its inception, International Women’s Day has assumed a new global dimension for women in developed and developing countries with support from industry, governments, educational institutions, community groups, professional associations, women’s networks, charities, non-profit bodies and the media.
Senegal Set To Take Delivery Of FSRU In Mid-May
Senegal is set to take delivery of its First Floating Storage Regasification Unit (FSRU) in the middle of May this year.
The FSRU is a Joint Venture (JV) KARMOL between Karpowership and Mitsui OSK Lines.
Karpowership which currently operates a 235MW capacity power ship that supplies about 15% of the country’s electricity needs also plans to switch its power ships to Liquified Natural Gas (LNG).
The move to switch to LNG will enable Karpowership to operate a cleaner and sustainable source of energy in the country.
National Oil Companies Slash Exploration Budgets As Low Price BitesSpeaking on the development, KARMOL Board Member Gokhan Kocak said, “This is a big moment for West Africa and the wider continent, and an exciting time for KARMOL”. “Usage of FSRUs means we can unlock the benefits of clean and affordable electricity for millions of people, even where countries have no domestic gas production or infrastructure” he added. The FSRU will set sail for the West African country in early April and on arrival, KARMOL plans to begin operations before the end of June. Source:www.energynewafrica.com
Nigeria: Angry Customer Stabs Ikeja Electric Staff
A staff of Ikeja Electric Plc, one of the distribution companies in the Republic of Nigeria, Popoola Olakunle, has been stabbed in the head in the course of carrying out his duties.
The incident occurred at the Oladeroun area of New Oko-Oba in the Fagba area of Lagos State.
The culprit, Saheed Olanrewaju aka Usama, a resident of 12, Abiodun Street, Iju-Ishaga in Fagba was subsequently apprehended on Tuesday, 16th March, 2021, with the assistance of the Traditional Ruler’s team and handed over to the Oko-Oko police station for immediate prosecution.
The management of Ikeja Electric has condemned the incident in a statement by the Head of Corporate Communications, Ikeja Electric, Felix Ofulue.
“Ikeja Electric will continue to condemn these attacks on its employees in strong terms,” he said. Ofulue pleaded with its customers to desist from attacking the staff of Ikeja electric.
“While we understand that sentiments regarding utility services can be quite emotive, we maintain that wanton attacks on our staff are completely irrational, irresponsible and unproductive, especially where Ikeja Electric has provided multiple channels through which our customers can lodge formal complaints with respect to our service” he added.
The suspect, Saheed Olanrewaju, who is currently in police custody, is expected to be arraigned in Court today.
Source:www.energynewsafrica.com
Liberia: Electricity Key Component Of Weah’s Pro-Poor Agenda
The Liberian Minister of Mines and Energy, Gester E. Murray has, emphasised the importance of the electricity sector in the Pro-poor agenda of President George Weah.
He made this known during the licensing ceremony recently held at the Liberia Electricity Regulatory Commission (LERC) offices.
“As many of you may be aware that under the leadership of this government, Dr. Weah has mainstreamed electricity into his flagship program, which is the Pro-poor Agenda for peace and development,” Murray said.
He added that President Weah is doing everything in his power to ensure an improvement in the electricity sector.
The Central Bank of Liberia (CBL) Governor J. Aloysius Tarlue, who spoke at the event, pledged the Bank’s support in achieving a transformation of the sector to the benefit of Liberians in general.
The House of Representatives Chair of the Committee on energy and carbon, Vincent Willie, who attended the event, thanked the LERC and Liberia Electricity Corporation for their continuous efforts to improve the country’s electricity supply.
Source: www.energynewsafrica.com
China’s $6.4 Trillion Energy Transition To Transform Economy
China’s transition from the biggest polluter in the world to the leading force in renewable energy generation will completely transform its economy, a new report by Wood Mackenzie says.
Calling the upcoming changes tectonic, Wood Mac analysts noted the transition will require investments of $6.4 trillion in new power generation capacity alone over the next few decades, and said that while some of this will be spent on nuclear capacity, the bulk of investments would go towards boosting China’s solar and wind capacity, and the respective energy storage.
India Has The Opportunity To Build A New Energy FutureThe economic powerhouse that is China today was built on crude oil and metals, the Wood Mac report says, but this has made the country excessively dependent on energy imports. At the current rate of oil imports, China will come to depend on foreign oil for as much as 80 percent of its needs by 2030. Half of the gas it consumes will be imported. It is to avoid this that China is so determined to decarbonizes, according to the report: “For Beijing, energy independence and decarbonisation are inseparable: by winning the clean-energy race, China can cast off the shackles of its reliance on others and dominate the resources and technologies the world needs to decarbonise,” the authors noted. The transformation from a fossil fuel-dependent economy into an electricity-dependent one will not be without challenges. Chief among these would be securing enough raw materials to expand the national transmission network to accommodate the 6,870 GW of new capacity that the country will require to satisfy its growing energy needs over the next forty years. This would likely create another dependency, according to Wood Mac. While oil imports will eventually decline, copper imports are likely to jump significantly as the metal is essential for wind turbines, not to mention transmission lines and wiring. To date, China only produces 16 percent of the copper it uses domestically, with the rest coming from imports. Source: Oilprice.com
Ghana: Energy Ministry Will Create Space And Support For Petroleum Downstream Industry Players To Operate-Minister Assures
Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh, has assured players in the country’s petroleum downstream sector that the Ministry will work to provide the necessary space and support for the sector to play a strategic role in the development of the country.
He gave the assurance on Tuesday during separate meetings with the executives of the Petroleum Tanker Drivers’ Union and the Tanker Owners’ Union at the Ministry.
The Petroleum Tanker Drivers’ Union and Tanker Owners’ Union have been lamenting over some unresolved concerns which, they said was impacting negatively on their operations.
In November 2020, Gas Tanker Drivers’ Union withdrew their services, accusing the downstream regulator, NPA, of failing to address some issues of concern.
They, among other things, complained about police harassment at checkpoints and NPA’s lack of adherence to a 2017 Memorandum of Understanding signed by stakeholders on condition of service for tanker drivers and their mates.
They also complained about the non-compliance of transit losses and refusal of the depot operators to abide by the 20 degrees Celsius loading temperature requirement.
These issues still remained unresolved.
In a Facebook comment sighted by energynewsafrica.com, the Energy Minister, who is also the Member of Parliament for South Manhyia in the Ashanti Region, wrote: “This morning, I held separate meetings with the executives of the Tanker Drivers’ Union and the Tanker Owners’ Union. The two unions called on me to formally welcome me to the energy sector and to discuss a few issues that are relevant to their operations.
“In both meetings, I emphasised the importance of tanker operations to the petroleum downstream industry, and urged the two to continue working together to find common ground to ensure stable supply of petroleum products. I was happy to receive assurances from the two unions that they will do their best to keep the industry moving,’’ his post read.
“The Energy Ministry will continue to provide the necessary space and support to the petroleum downstream industry to ensure that it continues to play its strategic role in the development of the nation,” the post ended.
Source: www.energynewsafrica.com
They, among other things, complained about police harassment at checkpoints and NPA’s lack of adherence to a 2017 Memorandum of Understanding signed by stakeholders on condition of service for tanker drivers and their mates.
They also complained about the non-compliance of transit losses and refusal of the depot operators to abide by the 20 degrees Celsius loading temperature requirement.
These issues still remained unresolved.
In a Facebook comment sighted by energynewsafrica.com, the Energy Minister, who is also the Member of Parliament for South Manhyia in the Ashanti Region, wrote: “This morning, I held separate meetings with the executives of the Tanker Drivers’ Union and the Tanker Owners’ Union. The two unions called on me to formally welcome me to the energy sector and to discuss a few issues that are relevant to their operations.
“In both meetings, I emphasised the importance of tanker operations to the petroleum downstream industry, and urged the two to continue working together to find common ground to ensure stable supply of petroleum products. I was happy to receive assurances from the two unions that they will do their best to keep the industry moving,’’ his post read.
“The Energy Ministry will continue to provide the necessary space and support to the petroleum downstream industry to ensure that it continues to play its strategic role in the development of the nation,” the post ended.
Source: www.energynewsafrica.com
Ghana: BPA’s 50MW Solar Project To Be Connected To National Grid By March Ending
The Republic of Ghana will, by the end of March, 2021 connect 50MW solar farm executed by the country’s second largest state power generation company, Bui Power Authority, to the national electricity grid.
This will eventually boost electricity supply in the West African nation.
The 50MW solar farm, which is the first phase of 250MW solar project, is the second largest solar farm in West Africa after 50MW Akita solar farm in the Republic of Mali.
The first phase was commissioned November last year by Ghana’s former Senior Minister Yaw Osafo Marfo.
It will be the first solar utility scale to be connected to the national grid. Although there are three solar farms, generating power for the country none of them is on the national grid.
Dr. George Tettey, who is the deputy chief executive of BPA, told some selected journalists last week at a media engagement that engineers of BPA are currently conducting series of tests on the solar farm to ensure its integrity before it would be connected to the grid.
Source: www.energynewsafrica.com
Ghana: Oil Marketing Companies Deny Charging New Levies On Fuel
The Association of Oil Marketing Companies (AOMCs) in the Republic of Ghana has denied reports suggesting that they have started charging the new sanitation and pollution levy on petrol and diesel, hence the recent hike in fuel prices.
According to the Association, the recent upward adjustment in petrol and diesel prices are as a result of the rising crude oil prices on the world market and market forces and not the addition of the new levies being proposed by the government.
A litre of petrol is currently being sold at GHS5.4
In a statement signed by Kwaku Agyemang-Duah, who is the Industry Coordinator and CEO of the Association and copied to energynewsafrica.com, the Association said they would start charging the new levies when Parliament approves the 2021 Budget and Economic statement of the government.
“The Association of Oil Marketing Companies (AOMC) would like to state unequivocally that, the current fuel prices on the market are not a reaction to the proposed taxes/levies, but rather the existing world crude oil prices and market forces.
“Subsequently, the impact of the proposed taxes/levies would only take effect when parliament has approved the 2021 Budget and assented by the President of the Republic of Ghana and duly gazetted,” the statement indicated.
The association served notice that it would react to the proposed new levies at the appropriate time.
Below is the full statement by the Association of Oil Marketing Companies
We have monitored on the media landscape, the enthusiastic reaction towards a purported increase in petroleum prices at the pump, following the proposed review on taxes/levies, as presented to parliament on Friday, 12th March 2021.
The Association of Oil Marketing Companies (AOMC) would like to state unequivocally that, the current fuel prices on the market are not a reaction to the proposed taxes/levies, but rather the existing world crude oil prices and market forces.
Subsequently, the impact of the proposed taxes/levies would only take effect when parliament has approved the 2021 budget, assented by the President of the Republic of Ghana and duly gazetted.
At the appropriate time, OMCs will react accordingly, taking into cognizance the effective cost of operations.
Nevertheless, the AOMC is grateful to Government under the COVID-19 Support (Section 117), for the introduction of extension of the waiver of interest and penalties, as incentive for early payment of accumulated tax arrears.
However, we would like to propose a review on the condition that, beneficiaries must fulfill the first quarter tax obligation for the year 2021, and also consider the increment of the number of days for payment of petroleum taxes from 21 + 4 days to 40 days, to ensure effective collection of all adduced taxes.
Further, we would like to assure the general public that OMCs/LPGMCs will continue to pursue and uphold consumers’ interests and will always be at their service.
Source:www.energynewsafrica.com
Ghana: Former VRA Boss Criticises Gov’t For Proposing New Taxes On Fuel
A former Chief Executive Officer of Ghana’s largest state power generation company Volta River Authority (VRA), Dr. Charles Wereko-Brobby has criticised the Akufo-Addo led administration for proposing new taxes on petrol and diesel.
According to him, there is no justification for the introduction of Sanitation and Pollution taxes on petroleum products.
He said the sector has become an easy avenue for the government to rake in money through new levies and taxes hence the many tax components for fuel purchased.
Speaking on Citi FM, based in Ghana’s capital, Accra, the former VRA boss noted that since the administration of President John Agyekum Kufuor, several taxes have been slapped on the petroleum sector, leading to the high cost of fuel with consumers continually bearing the cost.
“It is totally unjustified… There is no justification, it [petroleum products] just happens to be a low-hanging fruit that you can just slap anything on,” he said.
He suggested that some special taxes introduced for specific purposes should be scrapped to offer petroleum customers some relief rather than the introduction of new taxes.
“20 years ago, President Kufuor introduced what he called the Refinery Recovery levy. That was supposed to last for four years but 20 years on, it is still here, now as the energy sector recovery levy. In 2015, oil prices collapsed and Mahama government instead of reducing prices according to the formula said our revenues are down because the datum prices of oil have gone down, so we need to plough back revenue, so there was a 2-year special petroleum levy. I think 8 years on, it is still on. I will suggest that if these two temporary taxes which were meant to address specific issues were removed, that alone will reduce taxes,” he said.
Dr. Wereko-Brobby said, “the idea that sanitation taxes should be put on petroleum doesn’t make sense. I think government has been dishonest with the people of Ghana and not just see petroleum as the big cow for ripping off people.”
He expressed concern that any further increase in the price of petroleum products could lead to other aspects of the economy being affected negatively.
Source: www.energynewsafrica.com