Shortage of petroleum products likely to hit Ghana – IES warns

The Institute of Energy Security has cautioned of an imminent shortage of petroleum products which is likely to hit across the country. Executive Director of the think-tank, Nana Amoasi VII said the possible shortage can be attributed to the persistent depreciation of the cedi, erosion of working capital for Bulk Oil Distribution Companies and scarcity of enough dollar supply. Speaking in an interview with Joy Business on October 18, the IES Executive Director expressed concern over the development which he believes could impact Ghanaians. “There is something to be much worried about and that’s the likelihood of the shortage of the commodity on the market on the back of a reported shortage of dollars for the Bulk Oil Distribution Companies, the importers and the erosion of working capital of some of these importers. The price of crude oil remains high and the cedi value continues to decline”. “We first raised these concerns in March this year and in the following month there were reports of the pocket of shortages of fuel across the country”, he explained. Proffering some solutions to address the matter, Nana Amoasi VII said government must, as matter of urgency, adopt stringent measures to avert an imminent fuel shortage. “This time around, any incident of shortage may be widespread if we fail to plan against it. It is more serious,” the IES boss warned. Meanwhile, consumers of petroleum products have begun witnessing an adjustment in prices at various pumps across the country. Checks by GhanaWeb Business show that some Oil Marketing Companies from October 16, 2022, increased the prices of petrol and diesel to about 16 percent and 12 percent respectively. Petrol is now selling for GH¢13.10 per litre from an earlier price of GH¢11.10 while diesel is going for GH¢15.99, from a previous price of GH¢13.90. The significant hike is however attributed to the marginal increase in the price of crude oil on the global market and the persistent depreciation of the cedi against the US dollar. MA/FNOQ Watch the latest episode of BizTech below:

The Institute of Energy Security has cautioned of an imminent shortage of petroleum products which is likely to hit across the country. Executive Director of the think-tank, Nana Amoasi VII said the possible shortage can be attributed to the persistent depreciation of the cedi, erosion of working capital for Bulk Oil Distribution Companies and scarcity of enough dollar supply. Speaking in an interview with Joy Business on October 18, the IES Executive Director expressed concern over the development which he believes could impact Ghanaians. “There is something to be much worried about and that’s the likelihood of the shortage of the commodity on the market on the back of a reported shortage of dollars for the Bulk Oil Distribution Companies, the importers and the erosion of working capital of some of these importers. The price of crude oil remains high and the cedi value continues to decline”. “We first raised these concerns in March this year and in the following month there were reports of the pocket of shortages of fuel across the country”, he explained. Proffering some solutions to address the matter, Nana Amoasi VII said government must, as matter of urgency, adopt stringent measures to avert an imminent fuel shortage. “This time around, any incident of shortage may be widespread if we fail to plan against it. It is more serious,” the IES boss warned. Meanwhile, consumers of petroleum products have begun witnessing an adjustment in prices at various pumps across the country. Checks by GhanaWeb Business show that some Oil Marketing Companies from October 16, 2022, increased the prices of petrol and diesel to about 16 percent and 12 percent respectively. Petrol is now selling for GH¢13.10 per litre from an earlier price of GH¢11.10 while diesel is going for GH¢15.99, from a previous price of GH¢13.90. The significant hike is however attributed to the marginal increase in the price of crude oil on the global market and the persistent depreciation of the cedi against the US dollar. MA/FNOQ Watch the latest episode of BizTech below: