Audio By Carbonatix
The Chief Executive Officer of the Chamber of Bulk Oil Distributors, Patrick Kwaku Ofori, has assured that Ghana will not face any immediate fuel shortages, despite growing concerns over fuel taxes and supply levels.
Speaking on Joy FM’s Top Story on Wednesday, March 18, Dr. Ofori said the country’s petroleum supply remains stable, largely due to the strength of private sector participation following the deregulation of the industry.
His comments come in the wake of calls by the Minority in Parliament on the government to scrap the 1 Ghana cedi fuel levy, saying it is placing an unbearable burden on Ghanaians already grappling with high living costs.
Also, there are concerns over the country’s reported seven-week fuel reserve and whether it constitutes a national buffer or private stock.
Dr. Ofori explained that the bulk of the reserves, particularly diesel, are held by private entities, mainly Bulk Distribution Companies (BDCs), on behalf of the country.
“If diesel is seven weeks, almost 90% of that is held on behalf of the country by private entities,” he said, adding that local production currently accounts for about 30 per cent of daily domestic consumption, further strengthening supply security.
He stated that while fuel availability is guaranteed, pricing remains beyond local control and is heavily influenced by global market conditions.
“For product availability, we can guarantee that, but the price we cannot. That is determined by international prices,” he stated.
According to him, even locally refined petroleum products are tied to global crude oil benchmarks, noting that rising crude prices and increasing premiums, particularly for shipments to West Africa, are driving costs upward.
Dr. Ofori also explained the process of calculating national fuel stocks, indicating that figures are compiled daily after terminal operations close, with data submitted to regulators to guide import planning.
He further disclosed that fuel cargoes scheduled for delivery between now and the end of April have all been confirmed, despite challenges such as high insurance costs and rising vessel charges.
“These agreements have been signed and firmed up, so the vessels will be heading into our waters,” he said.
He reiterated that there is no cause for concern over fuel availability in the coming weeks, assuring that supply remains secure even as global price fluctuations persist.
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