The Institute of Energy Security (IES) has predicted that the country will experience fuel shortage in the coming days due to the recent depreciation of the Cedi.
The Executive Director of IES, Nana Amoasi VII, disclosed on Accra-based Citi FM that the shortage will be influenced largely by the free fall of the cedi, and also the increase in oil prices on the international market.
“I regret to announce this bad news. I hope it doesn’t happen. What we have observed over the past few months within the downstream sector of the Petroleum industry is that the depreciation of the cedi and the international oil price rise is impacting negatively on their working capital.
“Between the last few weeks, the cedi has depreciated from about GH¢7.00 to GH¢7.4 giving a clear 40 pesewas on their business. If we are bringing the same quantity of 600 metric tonnes today, you will need GH¢7.40. That will amount to about GH¢4,440 and so 30,000 metric tonnes in the next window, you will need an equivalent of about GH¢7.2 million. A clear depletion of wiring capital,” he said.
According to him these factors will lead to the importation of less fuel in the country.
“If the situation continues and it is sustained, we will see a fuel shortage,”
On the other hand, the CEO of the Ghana Chambers Of Bulk Oil Distributors, Senyo Hosi held a different view on the issue.
“Not at all, there won’t be an imminent shortage of fuel. I can understand their concern. It is legitimate. But we need to understand that this will not be the first time we will be working with prices around $1000 per metric tonne.
“What we just have to do is to anticipate and make sure that we move credit alongside the same levels required to sustain prices.”
He indicated that stakeholders have forestalled the situation.
“We have been proactive about this. We have been engaging the Central bank to deal with the issues of supply.”
“We have also been engaging the NPA as well as the International oil traders to find ways to deal with the credit crunch that we may face because of the rising prices.”
Fuel prices at some fuel stations have crossed the GH¢8 per litre mark in the first week of March 2022, with predictions that fuel prices might be sold at GH¢9.00 per litre by close of the month.
The National Petroleum Authority (NPA), in earlier dialogue, disclosed that discussions are ongoing with the Ministries of Finance and Energy to find a feasible solution to the persistent rise in fuel prices.
“We are also concerned, there are a lot of discussions we are having with the Ministry of Energy, and we are seeing if together with the Ministry of Finance, we will make some proposals,” Head of Pricing at the NPA, Abass Ibrahim Tasunti earlier said.
Bainatv.com.gh/Khadijatu Kuburah Kailani
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