According to the National Petroleum Authority, NPA, Oil Marketing Companies, OMCs with at least 45 retail locations across the nation will be the only ones allowed to sell fuel goods under the Gold for Oil policy.
The goal, according to the NPA, is for the G4O to be evenly distributed across all gas stations in order for the effect on the drop in fuel costs to be felt.
When it was the NPA’s time to speak at the Ministers press conference on the subject of Petroleum Downstream: Retrospect and Prospects, Dr. Mustapha Abdul-Hamid provided information.
The Bulk Oil Storage and Transportation Company, BOST, declared on January 19, 2023, that it had begun marketing the 40,000 metric tonnes of petroleum goods acquired through the gold for oil barter agreement.
Fuel for the market was delivered to GOIL and other bulk oil distribution companies.
According to estimates, the program’s initial supply distribution only met 20% of Ghana’s market demands.
The 40 thousand metric tonnes of fuel products, all of which were Diesel, had little effect on prices at the terminals.
A litre of fuel will now cost 15 Cedis 25 pesewas thanks to a 4 percent price cut published by GOIL, but the cost of gasoline will remain at 15 Cedis 25 pesewas.
According to GOIL, the advantages of the Barter of the G4O program, in which it took part as an oil trading business, had an impact on the decrease.
A further 40,000 metric tonnes of petroleum product were delivered on February 18.
The National Petroleum Authority, NPA team handling the G4O program has decided to distribute the petroleum product to only OMCs with less than 45 retail outlets in order for the impact of the decrease in fuel prices to be apparent. This is to ensure that the second consignment has a significant impact at the pumps.
Smaller OMCs won’t be destroyed, according to NPA Chief Executive Dr. Mustapha Abdul-Hamid NPA, who also explained that over time, other OMCs will be brought in.
According to Mr. Abass Tasunti, head of Regulation and Pricing at the NPA, the Bank of Ghana spent about $40 million on the first 40 000 metric tonnes of gasoline obtained through the G40, and has not yet calculated how much was spent on the second consignment.
By Monday, February 27, 2023, The Second Shipment is anticipated to be on the market.