According to the Institute of Energy Security (IES), the country may face a fuel scarcity in the coming days.
The Executive Director of IES, Nana Amoasi VII, stated on the Point Blank section of Eyewitness News that the shortage will be impacted by the devaluation of the cedi and the increase in international oil prices.
“I regret to announce this bad news. I hope it doesn’t happen. What we have observed over the past few months within the downstream sector of the Petroleum industry is that the depreciation of the cedi and the international oil price rise is impacting negatively on their working capital.
“Between the last few weeks, the cedi has depreciated from about GHS 7.00 to GHS 7.4 giving a clear 40 pesewas on their business. If we are bringing the same quantity of 600 metric tones today, you will need GHS 7.40. That will amount to about GHS 4, 440 and so 30,000 metric tonnes in the next window, you will need an equivalent of about GHS 7.2 million. A clear depletion of wiring capital.”
According to him, these factors will result in the importation of less gasoline into the system.
“If the situation continues and it is sustained, we will see a fuel shortage,” he added.
Senyo Hosi, CEO of the Ghana Chamber of Bulk Oil Distributors, had a different point of view.
“Not at all, there won’t be an imminent shortage of fuel. I can understand their concern. It is legitimate. But we need to understand that this will not be the first time we will be working with prices around $1000 per metric tonne.
“What we just have to do is to anticipate and make sure that we move credit alongside the same levels required to sustain prices.”
He stated that stakeholders had anticipated the event.
“We have been proactive about this. We have been engaging the Central bank to deal with the issues of supply.”
“We have also been engaging the NPA as well as the International oil traders to find ways to deal with the credit crunch that we may face because of the rising prices.”
Fuel prices at certain petrol stations surpassed GH8 per litre in the first week of March 2022, with predictions suggesting that the commodity will retail for GH9.00 per litre by the end of the month.
The National Petroleum Authority (NPA) has previously said that conversations with the Ministries of Finance and Energy are underway in order to find a workable solution to the continual rise in fuel prices.
It stated that the discussions will be centered on the probable elimination of various levies on petroleum goods.
“We are also concerned, there are a lot of discussions we are having with the Ministry of Energy, and we are seeing if together with the Ministry of Finance, we will make some proposals,” Head of Pricing at the NPA, Abass Ibrahim Tasunti earlier said.
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SOURCE: CITINEWS
