Fuel shortage looms as gold-for-oil ends – OMCs

The Chamber of Oil Marketing Companies (OMCs) has issued a stark warning about a potential fuel shortage in the coming days.

The OMCs attribute this looming crisis to the suspension of the government’s gold-for-oil program and the recent operational halt at the Sentuo Oil refinery.

Dr. Riverson Oppong, CEO of the Chamber, expressed concern over the situation, stating, “When the gold-for-oil started, it peaked and when it peaked, we in the petroleum sector saw this coming. Anytime you are drawing a graph and there is a peak, there is a fall, and we warned the government, but it won’t listen.“

The gold-for-oil program, implemented by the Akufo-Addo administration, allowed Ghana to purchase oil with gold, mitigating the impact of foreign exchange fluctuations.

However, the suspension of this program has disrupted the supply chain, leaving the country more vulnerable to global oil price shocks.

Furthermore, the operational halt at the Sentuo Oil refinery has further exacerbated the situation.

According to the CEO of the Chamber, this refinery played a crucial role in domestic oil production and processing, and its shutdown has significantly reduced local refining capacity.

Dr. Oppong emphasized the impact of these factors on the availability of petrol (PMS) in the market.

He stated, “And when the supply was cut to an extent and when the Sentuo Oil refinery also ceased to produce, or let’s say, process, we anticipated a loss. Today, the fuel shortage we find in the market has to do with the PMS. BDCs ceased to import because there was gold-for-oil.”

The OMCs are now urging the government to take swift and decisive action to address the situation. This could include measures such as:

• Re-evaluating and potentially reviving the gold-for-oil program or implementing alternative strategies to secure stable oil supplies.
• Exploring options to restart operations at the Sentuo Oil refinery or increase refining capacity at other domestic facilities.
• Engaging with oil-producing countries to negotiate better terms and ensure a stable supply of crude oil.
• Implementing measures to improve fuel distribution efficiency and minimize supply chain disruptions.

The potential fuel shortage poses a significant threat to Ghana’s economy. Disruptions in fuel supply can have a cascading effect, impacting transportation, agriculture, and other sectors. gas industry. It is essential to verify information and consult official sources for the latest updates.

Background Information:

• Gold-for-Oil Program: This program allowed Ghana to purchase oil using gold as payment, reducing reliance on foreign currency and mitigating the impact of exchange rate fluctuations.
• Sentuo Oil Refinery: This refinery plays a crucial role in domestic oil production and processing, contributing to fuel supply within Ghana.
• BDCs (Bulk Distribution Companies): These companies are responsible for importing and distributing fuel throughout the country.

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