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| Tema Oil Refinery (TOR). |
The
Institute of Energy Security has issued a call to action to the government,
urging them to ensure that the interventions and procedures that are already in
place to protect local consumers from the growing cost of gasoline on the
global market function as they were designed to.
According
to Nana Amoasi VII, the Executive Director of the Institute, Ghana does have
procedures that are supposed to cushion consumers against the growing cost of
gasoline; however, these mechanisms are not operating properly.
“The Tema
Oil Refinery (TOR) system is in a coma and the BOST system has not been able to
keep any strategic stock. Maybe we may have to reconsider its application and
management,” he said.
During an
interview on the 3FM Sunrise Morning Show with Alfred Ocansey, Nana Amoasi VII
said that there are current initiatives to reduce the impact of the growing
cost of gasoline on the economy; however, the challenge is, determining whether
or not these interventions are effective. It was mentioned by him that there is
a stabilisation and recovery levy in the process of the price build up, and in
addition to that, we have Tema Oil Refinery (TOR), which can control both
supply and price risk to some level.
“Unfortunately,
the Price Recovery Levy over the years has not been able to stabilize fuel
prices for Ghana and we have not even attempted to go into the Stabilization
Fund to cushion consumers in terms of subsidies” Nana expressed.
He
suggested that if the government wants to divert the Stabilization and Recovery
Levy Fund to keep strategic fuel stock, we could use it to fund that
arrangement and ensure that the Bulk Oil Storage and Transportation Company
Limited (BOST) desk has the right Oil and Gas Traders to manage the exposure
effectively. Furthermore, if we raise the amount of crude processed at TOR, as
well as manage the economy and rebuild the refinery, we may be able to provide
some relief to customers.
Nana Amoasi
VII went on to say that if other nations experiencing similar issues from COVID
and the Russia-Ukraine conflict, like as Kenya, South Africa, and Egypt, have
been able to control their gasoline costs via subsidies, interventions, and
excellent FX management, Ghana can do the same.
According
to the Institute of Energy Security, a gallon of fuel might cost GHS 45, while
diesel could cost GHS 54 plus, resulting in GHS 10 per litre for petrol and GHS
12 plus per litre for diesel, respectively.
The
forecast is based on a number of basic and technical elements, such as
worldwide news, price history, and pattern. The price of gasoline has risen by
11% on the worldwide market in the previous week.
Unfortunately,
we must convert the cedi to dollars in order to purchase petroleum on the
international market, and the cedi has lost value against the dollar.
He noticed
that the price of international gas oil and LPG dropped by 5%, but that the
drop in the value of the cedi in Ghana should have caused the situation to
peter out, particularly for those oil businesses that couldn't get dollars at
the Bank of Ghana rate. There will be some stability with diesel, but the 11%
increase on the global market will have a detrimental influence on LPG and
petrol.
Source:
ghananews.hrforum.uk
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