The National Petroleum Authority (NPA) yesterday, debunked claims that the ‘Gold for Oil’ consignment was selling at a higher price than fuel from other sources.
The NPA was reacting to comments made by a petroleum economist and political risk analyst, Dr. Theo Acheampong, on the Joy Newsfile Programme on Saturday, 18th March 2023, indicating that the prices of petroleum products being sold under the ‘Gold for Oil (G4O)’ programme were higher than those from other sources.
In a statement released by the NPA, it said: “We would like to state that the claim is inaccurate and may be based on inadequate information available to him at the time.”
It further revealed that the implementation of the G4O Programme had significantly driven market prices down, thus the gap between the price of the first consignment of G4O diesel, which arrived in January, and the market prices was about GH¢1.00 per litre.
However, this gap has closed due to the competition the G4O programme has created, it added.
Below is the full statement;
- Reference is made to comments made by Dr. Theo Acheampong on the Joy Newsfile Programme on Saturday, 18th March 2023, indicating that the prices of petroleum products being sold under the Gold for Oil (G4O) programme are higher than those from other sources. (https://www.myjoyonline.com/gold-for-oil-consignment-is-selling-higher-than-fuel-from-other-sources-dr-acheampong/)
- We would like to state that the claim is inaccurate and may be based on inadequate information available to him, at the time.
- Information on the sale of petroleum products by Bulk Import, Distribution and Export Companies (BIDECs) to Oil Marketing Companies (OMCs) depicts that a significant volume of products are sold above the G4O prices.
- For instance, on the 16th and 17th of March many of the BIDECs sold petrol to OMCs at ex-refinery prices ranging from GH¢9.63/Lt to GH¢11.50/Lt which were above the G4O price of GH¢9.60/Lt. Diesel was sold at prices ranging from GH¢10.13/Lt to GH¢11.50/Lt also above the G4O price of GH¢10.10/Lt.
- It is worthy to note that the implementation of the G4O Programme has significantly driven market prices down. The gap between the price of the first consignment of G4O diesel which arrived in January and the market prices was about GH¢1.00 per litre. However, this gap has closed due to the competition the G4O programme has created.
- We, however, do not dispute the fact that some transactions are below the G4O prices. It is important to note that prices of petroleum products are deregulated and therefore market forces can compel BIDECs to reduce their prices to remain competitive. This was expected to occur under the implementation of the G4O programme.
- Many of the BIDECs that are involved in the distribution of the G4O products have also been importing products on their own and are selling products from both sources to OMCs.
- The continuous interest expressed by BIDECs and OMCs to participate in the purchase of products supplied under the G4O Programme highlights the competitive prices of products supplied under the programme.
Corporate Affairs Directorate
22nd March 2023
