Executive Director of the Institute for Energy Security (IES), Nana Amoosi VII, has alleged that the government is using the GOIL Company Limited (GOIL) to influence the market in the wake of the hikes in fuel prices.
The assertion follows a sudden and significant surge (of about 10%) in the price of both fuel and diesel even before the fortnightly review
of petroleum products, which is to take place on October 30, 2022. Some Oil Marketing Companies (OMC), including Petrosol and Engen, are currently selling petrol per litre at GH¢17.45 and GH¢17.54 respectively. Diesel is also selling at GH¢19. 89 pesewas and GH¢19.44 pesewas respectively.
Despite these changes, Nana Amoosi VII, said the OMCs have observed that GOIL and TotalEnergies are still selling a litre of petrol at ¢13.99, while the price of diesel also remains the same.
The OMCs are worried that this development will distort the market.
“Strangely, we find that GOIL is selling something far below what these other marketing companies are putting out, and we are not surprised.”
“You can’t use a state institution or quasi-state institution to manipulate the market. It is a deregulated market. The least you can do is to manage your forex exposure well,” he said.
The astronomical surge in the price has been attributed to the fall of the cedi. The OMCs have indicated that they can no longer wait for the bi-weekly review of prices of petroleum products because the Bulk Oil Distribution Companies have been selling to them at the current market rate.
Meanwhile, there is a stable price for crude oil on the world market. Nana Amoasi further alleged that the government owes GOIL over GH¢80 million and further noted that the Bulk Oil Storage Transportation Company might be impacted by this debt.
“BOST owns close to 20 percent of GOIL’s shares, so any losses that GOIL will create, will come back to you and I to pay in the name of BOST.”
Nana Amoasi VII further predicted more tough times ahead since according to him, “there is no clarity on how the managers of the economy are seeking to bring down the fast-depreciating cedi, so we may be heading for rougher times.”
This comes at a time when the Ghana Private Road Transport Union (GPRTU) has also hinted at increasing the price of transport fares.
Effective Saturday, October 29, 2022, there would be a 19% increase in transport fares, GPRTU has announced.
Source: The Independent Ghana