Business & Finance

NPA: We’re Going To Ensure Fuel Supplied Under Gold-For-Oil Policy Reflects At The Pump

The Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Hon Mustapha Abdul-Hamid has said that his outfit is going to ensure that fuel or petroleum products supplied under the Gold for Oil policy reflect on pump prices.


Speaking on the Information Ministry’s “Minister’s Press Briefing” program on Wednesday February 22, 2023, the NPA said it will strengthen its regulatory mechanisms to ensure that all oil marketing companies that receive fuel under the program sell at the true price.


According to him, this is to make fuel affordable to the Ghanaian public. He says the goal of the Gold for Oil policy is to make fuel available and affordable in the country by doing away with the complications that surrounds purchasing with the Cedi-Dollar exchange rates.


He indicated that “three cargos of Gold for Oil consignments of fuel have been received so far under the policy”- 40,000 metric tonnes of diesel, 35,000 metric tonnes of petrol and 40,000 metric tonnes of diesel.


Hon Mustapha added that although the first consignment which was the 40,000 Metric tonnes wasn’t enough for us per the country’s consumption rate, it caused a little reduction in GOIL’s fuel prices of about 70 pesewas and other companies of about 20 pesewas reduction although that was apparently not a significant change. He says this time, the Gold for Oil consignment would be extended to companies with not less than 45 outlets across the country to bring about stability in fuel prices.


He also indicated that “purchased gold used for petroleum were imported through Barter and Broker Channel”. He further reiterated that “Gold payment arrangement is a solution to the pressures that petroleum puts on the Cedi.”


As part the NPA’s measures to make the petroleum industry a vibrant, effective and efficient one, Hon. Abdul-Hamid stated that the “NPA has revoked licenses and published the names of defaulting PSPs and also made collaboration with security agencies to prevent illegal imports, exports and product dumping is being undertaken.” He averred that “periodic petroleum product monitoring exercises are being done to improve things for Ghanaians.”


The NPA Boss emphasized that “the goal of every action the NPA has taken so far has been to ensure industry efficiency, G40’s implementation to make sure pricing reflect the gains and the continuous use of technology operation.”


He therefore insisted that notwithstanding NPA’s supervision and regulation of the petroleum sector, “neither the government nor the NPA is responsible for determining or fixing the prices of petroleum products”.


“The government instituted the deregulation policy in 2015 to make the determination of fuel prices be made based on demand and supply forces at the market.” “National Petroleum has been operating a deregulated regime till now,” he reiterated.


“Market forces such as price at the international market, premiums and profits by oil marketing companies and the value of the Cedi are the determinants of fuel prices. As such, it is not within the mandate of the NPA to fix fuel prices as many have been agitating for”, he added.



Source: William

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