'Ghana to experience fuel shortage soon' - Institute for Energy Security

Barely three weeks after a furnace at the Crude Distillation Unit (CDU) of the Tema Oil Refinery (TOR) exploded, Institute of Energy Security has raised alarm about a likely fuel shortage in the coming days.

The Institute attributed this to the shutdown of the TOR and delays in the import and export of petroleum products by oil companies as a result of congestion at the port.

In a Press Release signed by Richmond Rockson Principal Research Analyst, Petroleum Unit of the Institute, it indicated that the current level of petroleum products in the country can only last for 13 days (2weeks) below the mandatory strategic level of 6weeks.

The release added that the last time the country came close to this situation in June 2014, it resulted in fuel shortage across the country.

“The stocks held in-tank at Bulk Oil Distribution Companies (BDC’s) facilities in Tema stood at 24,750 metric tonnes. A year ago, the combined stock of these fuel stood at 451,200 metric tonnes; a little above the mandatory 6weeks requirement. Today, the stock of gasoline and gasoil combined can meet just 13-days of fuel supply. The last time the country came close to this situation was June 2014 and this actually resulted in fuel shortages in the Country”

The Institute also revealed that the country is at a risk of Liquefied Petroleum Gas (LPG) shortage if BOST is not allowed to discharge its produce at the port in the coming days.

“IES has also noted unfairness in the use of the Tema Oil Jetty which will result in the shortage of LPG in the coming days. IES has found out that, while an LPG vessel belonging to BOST has been at anchorage since January 23, 2017 awaiting space to discharge their products, Fuel Trade within the period has discharged more than two vessels of LPG through the Oil Jetty from January 23, 2017 till date.”

The Institute also appealed to relevant authorities to with immediate effect put in the necessary measures and ensure an increase in production of petroleum products to avert the shortage.

“If the fuel discharge and loading constraints, coupled with the shut-down of the Refinery persist, the situation will create fuel shortage across the country within the next few weeks. The Institute for Energy Security is therefore calling on the quarters concerned in ensuring fuel security to as a matter of urgency increase fuel supplies for strategic reserves in order to avoid the eminent threat facing the country.”