Shortage of petroleum products likely to hit Ghana

Shortage of petroleum products likely to hit Ghana – IES warns.

The Institute of Energy Security (IES) has issued a warning that there will soon be a shortage of petroleum products, and it is expected that this shortfall would affect the whole nation.

Nana Amoasi VII, the Executive Director of the think-tank, stated that the possible shortage can be attributed to the persistent depreciation of the cedi, erosion of working capital for Bulk Oil Distribution Companies, and insufficient dollar supply. He made these statements in response to a question regarding the cause of the shortage.

The Executive Director of the Institute of Energy Security (IES), who was speaking in an interview with Joy Business on October 18, voiced alarm about the development, which he feels might hamper Ghanaians.

"There is something to be much worried about and that's the likelihood of the shortage of the commodity on the market on the back of a reported shortage of dollars for the Bulk Oil Distribution Companies, the importers and the erosion of working capital of some of these importers. The price of crude oil remains high and the cedi value continues to decline".

"We first raised these concerns in March this year and in the following month there were reports of the pocket of shortages of fuel across the country," he explained

Nana Amoasi VII suggested several remedies to the problem in order to handle it, and he added that in order to manage an impending fuel shortage, the government has to take rigorous steps as soon as possible.

"This time around, any incident of shortage may be widespread if we fail to plan against it. It is more serious," the IES boss warned.

Meanwhile, consumers of petroleum products have begun witnessing an adjustment in prices at various pumps across the country.

According to checks conducted by GhanaNews.hrforum.uk, certain Oil Marketing Companies raised the rates of petrol and diesel by around 16% and 12 %, respectively, beginning on October 16, 2022.

The price of a litre of petrol has increased to GH¢13.10 from the previous price of GH11.10, while the price of a litre of diesel has increased to GH¢15.99 from the previous price of GH¢13.90.

However, the large increase may be ascribed to a little rise in the price of crude oil on the international market as well as the ongoing depreciation of the cedi in comparison to the US dollar.

Source: ghananews.hrforum.uk