Claims that gold-for-oil sells higher than other sources inaccurate – NPA
The National Petroleum Authority (NPA) has disputed a claim by an ECONOMIST and Political Risk Analysis that prices of fuel under the Gold-for-Oil deal are higher than those from other sources on the market.
Dr Theo Acheampong is reported to have made the assertion on News File.
Reacting to the claim, the NPA in a statement said the assertion may be based on some inadequate information.
Read the details of the statement below:
REJOINDER: GOLD FOR OIL CONSIGNMENT SELLING HIGHER THAN FUEL FROM OTHER SOURCES – DR. ACHEAMPONG
1. 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/)
2. We would like to state that the claim is inaccurate and may be based on inadequate information available to him, at the time.
3. 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.
4. For instance, on the 16th and 17th of March many of the BIDECs sold petrol to OMCs at ex-refinery prices ranging from GHS9.63/Lt to GHS11.50/Lt which were above the G4O price of GHS9.60/Lt. Diesel was sold at prices ranging from GHS10.13/Lt to GHS11.50/Lt also above the G4O price of GHS10.10/Lt.
5. 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 GHS1.00 per litre. However, this gap has closed due to the competition the G4O programme has created.
6. 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.
7. 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.
8. 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
Source: Classfmonline.com/cecil Mensah
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