Dr. Yussif Sulemana, Energy Management Strategist, has specified that Bulk Oil Distribution Companies (BDCs) need about US 400million dollars to import finished petroleum products into the country.
According to Dr. Sulemana, the US$200million that the Bank of Ghana (BoG) is offering BDCs to bring the finished products on monthly basis is inadequate.
“Looking at the amount, if we should segregate the amount for the gold for petroleum products plan, we need about US$400million to import petroleum products so, to give out US$200 million within the first quarter, it will create a lot of gap, I mean huge gap.”
Dr. Sulemana
The Energy Strategist also said the government may have a strategy put in place to import petroleum products, their reason for the gold for oil barter arrangement, thus no need to sound an alarm at this time.
“I want to believe that because of the gold-to-oil deal or products-to-gold exchange, which is being championed by the Bank of Ghana (BoG) and other allied agencies within the downstream sector, the country’s deficit will be covered hence no cause for concern.”
Dr.Sulemana
The only cause for concern should be the unavailability of forex, Dr. Sulemana said, and according to him, the forex is critical in stabilizing prices at the pumps, coupled with other factors.
“If you look at it, what actually caused the stability of the pricing at the pumps is just because of the availability of forex and nothing else. So if we do not have availability of forex (in this case, dollars), then they will be pressured.”
Dr.Sulemana
Furthermore, Dr. Sulemana said that the country is still in the early days of the year, thus, entreats all to wait patiently in hopes that the gold for oil deal succeeds so that the country will have no cause to worry.
According to the energy tactician, January is a crucial month for the downstream, referring to the petroleum sector, because this is the first time the country is going for this kind of deal.
Ghana Affected By Surge in Crude Oil Prices
The Ghanaian economy is amongst a lot of other economies likely to suffer a double impact of the recent surge in crude oil prices.
On Monday, January 09, 2023, the prices of crude oil experienced a significant rise due to China, a major global economy, reopening its borders.
With China as a major importer of crude oil, the increased demand resulting from the reopening led to an uptick in prices, which increased from US$74.67 to US$79.47 per barrel.
Due to this latest development, the Ghanaian economy will likely see a double impact as Ghana is both a producer of crude oil and a consumer of finished petroleum products.
Though on one hand, this comes as a good news for the government – as this will help boost government revenue; on the other hand, the rise, coupled with the recent depreciation of the cedi is also expected to lead to increased prices of finished petroleum products at the pumps which would put pressure on consumers.
Latest figures from the Bank of Ghana reveal that the dollar is currently selling at GH¢9.0092 per dollar as at 8:01am this morning.
Whereas fuel prices: petrol and diesel are now being sold for GH¢12.40 and GH¢14.60 respectively.
