The National Petroleum Authority (NPA) has assured the public that the Gold for Oil (G40) initiative will meet 50 percent of the country’s oil demand by March 2023.
According to NPA, this will affect the price of used pumps in the country.
A statement issued in Accra yesterday by the NPA said it will work with the Bulk Oil Storage and Transportation Company Limited (BOST) to negotiate prices with international oil traders, to ensure that the landed cost procured in the program is always in line with the competition.
The statement said that all Bulk Import, Distribution, and Export Companies (BIDECs) and Oil Marketing Companies who wish to purchase products under the G4O program will be required to sign an agreement confirming their willingness to comply with the terms and conditions to participate in the purchase and sale of G4O products.
The implementation of the government’s G4O program, which begins with the arrival of the first shipment of about 40,000 metric tons of solar on January 15, 2023, will cost approximately US$40 million.
The first consignment of 40,000 metric tons of diesel, the statement said, represents about 10 percent of the country’s combined monthly demand for gasoline and diesel and is expected to gradually increase imports under G4O to about 50 percent of the country’s total gasoline demand. and diesel in March 2023.
He said the main objective of the program is to use additional foreign exchange resources from the Domestic Gold Purchase (DGP) program of the Bank of Ghana to provide foreign currency for the importation of petroleum products for the country which is currently about US$ 350 million per month. .
The statement said that the implementation of G4O will reduce the pressure on the dollar (the currency used to import petroleum products) and avoid the increase in the price of petroleum due to the depreciation of the cedi against the dollar.
He said the program will ensure that the cost of importing products from international oil traders will be lower, adding that “payments for oil supplies should be made in two channels by means of barter trade where gold is exchanged for oil or through brokerage channels where gold is converted into cash and paid to suppliers.”
The statement said that reducing pressure and foreign exchange premiums imposed by international oil traders as well as gaining efficiency from the value chain will impact the price of used pumps in the country.
The NPA explained that “all this will ensure that the price of petroleum products imported under the G4O program shows at the pump for the benefit of consumers, the National Oil Authority (NPA) will regulate the price of the product in the interim until the volume increases. significantly.”
“The price BOST will sell the product to the bulk import, distribution and export company (BIDEC) will be approved by the NPA and the price BIDEC will sell to the oil marketing company (OMC) will also be approved by the NPA,” he added.
Source: The Ghanaian Times
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