TIG Post

Tag: COPEC

  • GUTA predicts shortage of goods during Christmas

    The Ghana Union of Traders Association (GUTA) is predicting a shortage of goods this festive season.

    GUTA recently led some traders in Accra to lock up shops in protest of the depreciating cedi and general economic difficulties.

    President of the Union, Joseph Obeng in an interview with Citi News said, the drop in value of the cedi against the dollar has eroded the capital of traders and has made them unable to import goods.

    “The capital of most businesses has eroded by about 50 per cent. So it looks like we will not be able to bring in the goods as we have done in the previous years. The prices may not also be as they used to be. I can foresee that happening because benchmark values have been reduced by over 60 per cent. So the consumers should not be looking at the traders, but rather the policymakers.”

    Dr Obeng tells Citi News that GUTA is in agreement with the President’s suggestions of industrialization and limited importations, but believes this must be done in areas where Ghana has a competitive advantage.

    “If we want to sustain our forex and ensure that the country is progressing, we are all for it, but if we want to industrialize and consume what is our own, we should be able to identify the areas we have the comparative advantage in Ghana. Importation has become so difficult these days, but how are the local manufacturers taking advantage? They are unable to take advantage because there is a thin line between the manufacturing here because the companies also import about 90 per cent of the production inputs.”

    Already, the Chamber of Petroleum Consumers (COPEC) has warned that should the prevailing conditions in the petroleum sector fester, there will be a shortage of petroleum products in the country ahead of the Christmas festivities.

    “If you look at the economic activities that occasion the last quarter of the year, we are not looking at the cedi doing any better, importations are going to double because of the festivities and the currency may still take a battering and once that happens you are expecting prices to go up further”, Executive Secretary of the COPEC, Duncan Amoah.

    Source: Citi News

     

  • COPEC now cheerleader for OMCs instead of fighting for fuel users – Wereko-Brobby

    The Chief Policy Analyst at the Ghana Institute of Public Policy Options Dr. Charles Wereko-Brobby has lashed out at the Chamber of Petroleum Consumers (COPEC) for doing little or nothing in fighting for petroleum users in the wake of consistent rise in fuel prices.

    Dr. Wereko-Brobby accusedof currently being the chief cheerleader for Oil Marketing Companies (OMCs) in announcing annoying increases in the prices of petroleum products.

    An incensed Dr. Wereko -Brobby in an interview on Eyewitness News wondered why COPEC has refused to fight for the interest of consumers, who are bearing the brunt of price increases and taxes slapped on the products.

    The former Chief Executive Officer of the Volta River Authority (VRA) said COPEC is now singing National Petroleum Authority’s songs instead of fighting to ensure that fuel prices are brought down.

    Consumers were slapped with fuel prices again on Tuesday, November 1, 2022, with petrol leapfrogging to GH¢17.99 per litre, Kerosene GH¢14.70, while diesel now sells at GH¢23.49 per litre at various pumps.

    Speaking in an interview with Umaru Sanda Amadu on Eyewitness News, the former VRA boss asserted, “NPA has reneged on its duty and given it to COPEC which ironically is supposed to be representing the interest of the consumer… COPEC is now the chief cheerleader for oil marketing companies who keep announcing prices willy-willy. That is not the way deregulation was set up to go, it just keeps piling the pressure on [consumers]”.

    He blasted the Akufo-Addo-led government for always being seen jolly-joying in 60 strong SUVs to with his entourage around the country when hardships stare in the faces of Ghanaians.

    He said the government’s sloganeering of feeling the pains of the ordinary Ghanaians cannot be accepted.

    “…So prices are adjusted to reflect the current global prices but the windfall profits nobody wants to talk about it and then somebody says I feel your pain, you cannot feel the pain of Ghanaians when you ride 60 strong SUVs to travel round the country,” Mr Wereko-Brobby fumed.

    Source: Citi News

     

     

  • ‘Arrest’ Dollar to bring fuel prices under control – COPEC to BoG

    The Chamber of Petroleum Consumers Ghana (COPEC) has asked the Bank of Ghana and the Economic Management Team to take immediate steps to halt the fast decline of the Cedi against the US Dollar to stabilise fuel prices.

    The Chamber attributed the continuous hikes in fuel prices to the “free fall” of the Cedi and cautioned that fuel prices could hit “uncontrollable” levels in future if the local currency was not stabilised.

    In an interview with the Ghana News Agency, Mr Duncan Amoah, Executive Secretary of COPEC, said fuel prices could hit GHS20 per litre by the end of the year if the rate of depreciation of the Cedi was not halted immediately.

    “Bank of Ghana should find some immediate solution to halt the Cedi’s steep depreciation. Whatever policy intervention that our Economic Management Team would need to put in place immediately to find a way to stabilise the cedi should be done,” he said.

    “Availability of dollar, if not addressed in the coming days, we could also be hitting a fuel shortage situation as well,” Mr Amoah added.

    Some oil marketing companies on Monday morning, October 17, 2022, adjusted their prices upwards, selling petrol and diesel for GHS 13.10 and GHS15.99 per litre respectively.

    The adjustments represent more than 10 per cent increment from the last pricing window, which closed on Saturday, October 15, 2022, with diesel and petrol then selling at an average GHS11.05 and GHS 13.98 respectively.

    Ahead of the current pricing window, which opened on Sunday, October 16, 2022, COPEC and the Institute for Energy Security (IES) projected an increase in fuel prices, citing the increases in price of petroleum products on the international market, and the “significant decline” in the value of the local currency against the dollar as the catalyst.

    Whereas COPEC projected an increment of about 10 per cent for both petrol and diesel, the IES estimated that prices would go up by about 7 and 12 per cent for petrol and diesel respectively.

    “Between the current window and the next window due, crude oil price is observed to have seen an increase of 3.66 per cent from $89.46 to $92.73 per Barrel, whilst the Dollar index has further gone up by about 4.08 per cent from GHS10.21 to GHS10.627 per Dollar as per Government rate (Conservative figures) though actual market rates are quite higher currently,” COPEC said in a statement.

    In its review of the last pricing window, the IES said the Cedi depreciated by 2.5 per cent from the previous rate of GHS10.53 to the current rate of GHS10.89, to the US Dollar.

    “In IES’ estimation, consumers of Gasoline and Gasoil may pay between 7 and 12 per cent more for a litre at the pump in the next two weeks, with Gasoil per litre price hinging close to GHS15,” it said.

    The BoG recently embarked on a joint operation with the Police, which led to the arrest of 76 individuals and entities who allegedly engaged in the buying and selling of foreign currencies without license.

    The move formed part of the Bank’s strategy to sanitise the foreign exchange market and ensure compliance with the country’s foreign exchange regulations.

    Source: GNA

  • Fuel prices to increase by 10% effective October 16 – COPEC predicts

    The Chamber of Petroleum Consumers (COPEC) has warned Ghanaians to brace themselves for yet another surge in fuel prices.

    Prices of petroleum products are expected to see a rise from Sunday, October 16. This forms part of the adjustments for the 2nd pricing window of this month.

    According to COPEC, fuel prices across pumps are projected to see an increase of an average of 10% for both petrol and diesel.

    From observed figures within the downstream industry, and forex movements, COPEC anticipates an average price escalation of about 10.12% for both petrol and diesel based on the increase in price of crude oil on the international market and the depreciation of the cedi.

    “Between the current window and the next window due, 16 Oct 2022, Crude oil price is observed to have seen an increase of 3.66% from $89.46 to $92.73 per Barrel, whilst the Dollar index has further gone up by about 4.08% from GHS10.21 to GHS10.627 per Dollar as per Government rate (Conservative figures) though actual market rates are quite higher currently,” COPEC observed.

    The corresponding international processed Petroleum prices for the next window averages as follows:

    Petrol: $964.75/MT (up by 15.72%)
    Diesel: $1,097.15/MT (up by 9.60%)

    Internally, the projected average price of both Petrol and Diesel for the next window are expected to be GHS13.77/L, showing a price jump of 10.12% over the current Mean fuel Prices for both products across the various OMCs trading.

    From observed data, Petrol, which is currently selling at an industry average of GHS11.06/L is likely to be sold at GHS12.38/L (11.88% higher) from 16 October 2022 whilst Diesel currently selling at an industry average of GHS13.95/L is likely to be sold at GHS15.16/L. (8.72% higher)

    For LPG, the international price is estimated to hit $618.34/MT (up by 3.81%); the price of LPG is likely to go up by 5.04% to sell around GHS10.21/kg.

    Considering no sudden jerks in Crude Oil pricing, that may lead to changes in Petrol, Diesel and LPG Prices on the International market, the Mean Ex-pump prices are expected to be within the projected figures by +/-2% as indicated below:

    Petrol: GHS12.12/L to GHS12.63/L
    Diesel: GHS14.86/L to GHS15.46/L
    LPG: GHS10.01/kg to GHS10.41/kg

    COPEC has therefore implored the petroleum service providers to be considerate of applying the full force of the indexes in their pricing.

    It added: “We are without equivocation, mindful that, the projected figures are conservatively lower than what the actuals could be due to the continuous depreciation of the local currency.”

    It further admonished: “Government to do whatever it deems necessary, to ensure an urgent stabilisation of the cedi to the Dollar exchange rate in order to prevent pricing of petroleum products getting to an impending disaster as the effect of these steep increases in fuel prices cuts across all sectors of the local economy and to also further ensure some drastic reductions of some of the existing taxes and levies on Petroleum products to help ease the burden on consumers.”

  • Fuel prices to go up further by 10% effective October 16 – COPEC

    Prices of petroleum products are expected to see a rise again beginning Sunday, October 16 as part of the adjustments for the 2nd pricing window of this month.

    Fuel prices across pumps within the country are projected to see an increase of an average of 10% for both petrol and diesel, according to the Chamber of Petroleum Consumers (COPEC).

    From observed figures within the downstream industry, and forex movements, COPEC anticipates an average price escalation of about 10.12% for both petrol and diesel based on the increase in price of crude oil on the international market and the depreciation of the cedi.

    “Between the current window and the next window due, 16 Oct 2022, Crude oil price is observed to have seen an increase of 3.66% from $89.46 to $92.73 per Barrel, whilst the Dollar index has further gone up by about 4.08% from GHS10.21 to GHS10.627 per Dollar as per Government rate (Conservative figures) though actual market rates are quite higher currently,” COPEC observed.

    The corresponding international processed Petroleum prices for the next window averages as follows:

    Petrol: $964.75/MT (up by 15.72%)
    Diesel: $1,097.15/MT (up by 9.60%)

    Internally, the projected average price of both Petrol and Diesel for the next window are expected to be GHS13.77/L, showing a price jump of 10.12% over the current Mean fuel Prices for both products across the various OMCs trading.

    From observed data, Petrol, which is currently selling at an industry average of GHS11.06/L is likely to be sold at GHS12.38/L (11.88% higher) from 16 October 2022 whilst Diesel currently selling at an industry average of GHS13.95/L is likely to be sold at GHS15.16/L. (8.72% higher)

    For LPG, the international price is estimated to hit $618.34/MT (up by 3.81%); the price of LPG is likely to go up by 5.04% to sell around GHS10.21/kg.

    Considering no sudden jerks in Crude Oil pricing, that may lead to changes in Petrol, Diesel and LPG Prices on the International market, the Mean Ex-pump prices are expected to be within the projected figures by +/-2% as indicated below:

    Petrol: GHS12.12/L to GHS12.63/L
    Diesel: GHS14.86/L to GHS15.46/L
    LPG: GHS10.01/kg to GHS10.41/kg

    COPEC in a statement, therefore, implored the petroleum service providers to be considerate of applying the full force of the indexes in their pricing.

    It added: “We are without equivocation, mindful that, the projected figures are conservatively lower than what the actuals could be due to the continuous depreciation of the local currency.”

    It further admonished: “Government to do whatever it deems necessary, to ensure an urgent stabilisation of the cedi to the Dollar exchange rate in order to prevent pricing of petroleum products getting to an impending disaster as the effect of these steep increases in fuel prices cuts across all sectors of the local economy and to also further ensure some drastic reductions of some of the existing taxes and levies on Petroleum products to help ease the burden on consumers.”

  • Stop creating artificial shortage COPEC to fuel retailers

    The Chamber of Petroleum Consumers (COPEC) is calling on the National Petroleum Authority (NPA) to check the issue of artificial shortage at some fuel stations.

    This follows complaints from some motorists concerning the lack of petroleum products at some pumps in particular areas in Accra.

    In a Citi News interview, Head of Research at COPEC, Benjamin Nsiah noted that NPA must sanction the fuel stations that create artificial fuel shortages.

    “COPEC has already been mentioning this particular event to the authorities, specifically NPA to ensure that when prices are about to change, they visit some of these retail outlets to check their tanks and ensure that there are products available. If any retail outlet comes to say there are no products, it means it is an intention to create a shortage.”

    Mr. Nsiah further allayed all fears of fuel shortage, adding that there was enough stock in the system to last a month.

    “We believe that there is not going to be fuel shortage in the coming month. What we know is that there is enough fuel to serve the market.”

    Source: Citi News

  • Prices of petroleum products to go up by 5.5% COPEC

    Prices of petroleum products at the pumps will from today, August 16, 2022 see an increment of 5.5%.

    This was disclosed by the Chamber of Petroleum Consumers (COPEC).

    In spite of reduction on the world market, Petroleum increment in Ghana, according to the Executive Secretary of COPEC, Duncan Amoah, is as a result of the sharp depreciation of the cedi on the local market.

    Mr Duncan Amoah explained that “between the current first pricing window and the next fuel pricing window of the month August 2022, which commences from tomorrow, August 16th, 2022, crude oil price has seen a drop by 4.53%, from $110.52 averagely to $105.51 per barrel, whilst that of finished products ( petrol and diesel ) have declined by an average of 7.5%”

    “The forex market has unfortunately however, been pretty turbulent over the period with the cedi depreciating steeply to close trading at about ¢9.8313 per dollar.”

    Nonetheless, COPEC added that since there won’t be any additional tax breaks, the estimated average costs for gasoline and diesel are expected to rise from 10.959 to 11.55 cents per liter, with diesel increasing from 13.3 to 13.965 cents per liter.

    Meanwhile, Liquefied Petroleum Gas (LPG), is expected to go up by 10.306% to sell at about ¢9.58 per kilogramme.

    Source: The Independent Ghana

     

     

  • Petrol, diesel, LPG prices to go up this week—COPEC, IES project

    Fuel prices are likely to up in the coming days following a surge in prices of finished petroleum products and crude on the international market, analysts have projected.

    In separate analysis of the May 2022 First Pricing Window (May 1 to May 15, 2022), the Chamber of Petroleum Consumers (COPEC) and the Institute for Energy Security (IES) projected that prices of petrol, diesel and Liquefied Petroleum Gas (LPG) would record a marginal increase on the local market this week.

    Currently, petrol is selling at an average GHS9.41 per litre, while diesel is pegged at GHS11.12 per litre an increase of 7.34 per cent from the previous average price of GHS 10.36 per litre.

    In its projections for the May 2022 Second Pricing Window (May 16 to May 31, 2022), COPEC projected that the prices of petrol would go up by 4.74 per cent to settle at GHS9.990 per litre whereas diesel would record a 1.08 per cent gain to settle at GHS11.35 per litre.

    The Chamber also projected that the price of LPG would also go up by 3.76 per cent to sell at GHS10.473/kg.

    “Considering no sudden jerks in Crude Oil pricing, that may lead to changes in Petrol, Diesel and LPG Prices on the international market, then the Ex-pump prices are expected to be within the projected figures to within one per cent,” it said.

    “The expected increase in fuel prices is primarily due to the fallen Dollar exchange rate and increase in prices of processed fuel ( Petrol, Diesel and LPG) on the international market with increase in Crude price by $3/barrel,” it added.

    Similarly, the IES projected that fuel prices would go up marginally at the pumps, but it did not indicate the rate of increment.

    In its review of the just-ended pricing window, the Institute said an increment in prices of finished petroleum products on the international market would trigger prices to rise locally for the rest of the month.

    The IES said though the cedi recorded some gains (appreciated by 0.28 per cent) against the US Dollar in the just-ended pricing window, prices of petrol, diesel and LPG may still see an upward adjustment, barring any intervention from the Government.

    “For the rest of May 2022, the 7.64 per cent rise in Gasoline price, 1.90 per cent rise in Gasoil price, and the 6.05 per cent rise in the price of LPG on the international market will push local market prices higher.

    “In IES’ estimation, the upward revision of Gasoline, Gasoil, and LPG prices may be significant, on the back of rising international fuel prices, and the growing pockets of fuel shortages across the country,” it said.

    There have been persistent calls on the Government to reduce taxes on petroleum products to cushion consumers against the surge in prices of petroleum products on the international market, which has a direct impact on local prices.

    The Government has dropped some margins on petroleum products, amounting to a reduction of 15p per litre but analysts say the reduction is insignificant given the rate of increment since the beginning of the year.

    Source: gna.org.gh

  • Ofori-Atta, Energy Ministry to blame for hike in fuel prices COPEC

    The Chamber of Petroleum Consumers (COPEC) has blamed the rising petroleum prices in the county on the lackadaisical attitude of the Ministry of Energy and the Finance Minister, Ken Ofori-Atta.

    According to the Chamber, the Finance Minister who should have taken steps in curtailing the rising fuel prices has been adamant even when prices on the International Market was dropping.

    “We started talking about the rising price of fuel sometime in March this year. We had indicated the need to relax some of the taxes in the sector in order that we do not push the cost of living beyond the reach of the average Ghanaian. Sadly, nothing has been done.

    “I also blame a section of the media, again the Energy Ministry also tries to rationalize and make the justification on why prices are going up,” the Executive Secretary for COPEC Ghana, Duncan Amoah told Starr FM.

    However, a Research Fellow with the Institute of Energy Studies, Fritz Moses has also predicted that Ghanaians should expect an increase in petrol and diesel prices due to the rising price on the International Market.

    According to him, if the government does not put in place temporary measures Ghanaians should have no option other than to brace themselves to pay more for fuel.

    “We also see the rise in demand as we are getting closer to the winter season in Europe and America for keeping purposes because of that we are expecting prices to go up.

    “For us, we are not saying the government should step in now, we think that the government should have stepped in a long time ago. When we see price increase from last year, last year as of 23rd November was GH¢49.50 per liter at local pumps entering the year, we reached 5ghc per liter,” he revealed during an interview on Starr FM.

    Meanwhile, some Transport Operators have threatened to increase transport fares from Monday, 8th November 2021.

    Source: starrfm.com.gh

  • COPEC predicts fall in fuel prices by September ending

    The Chamber of Petroleum Consumers (COPEC) has predicted a decrease in the prices of fuel at the pump.

    According to COPEC, the marginal reduction should kick in by end of September.

    Executive Secretary of COPEC, Duncan Amoah, told Citi News that the fall will be 1% for petrol and 2% for diesel.

    “Our checks with the platt benchmark indicates petrol probably has lost about 4 pesewas per litre if you do just the international benchmark platt values. Again, diesel also seem to have recorded some 10 pesewas reduction. If all things are held equal, if the cedi whose performance has been quite stable over the past couple of weeks should be taken into account, Ghanaians should expect at least some marginal reduction in pump prices,” Duncan Amoah said.

    According to COPEC, it made the forecast based on world crude oil prices and as major oil-producing countries ramp up their production after the negative impact of COVID-19.

    Energy think tank, Institute of Energy Security had earlier indicated a likely increase in fuel prices for the first pricing window in September.

    Petrol is currently selling at GHS4.89 per litre while diesel is selling at GHS4.91 litre.

    Source: www.ghanaweb.com

  • COPEC calls for a review of the deregulation policy in fuel pricing

    The Government of Ghana in June 2015 put in place a deregulation policy that had the expectation of allowing marketers and importers of petroleum products to set directly their own prices based on import parity costs, taxes, and margins.

    However, the Executive Secretary of the Chamber of Petroleum Consumers Ghana (COPEC Ghana), Duncan Amoah has said that the deregulation policy has only brought benefit to the Government and not the populace and as such the policy needs to be reviewed.

    Speaking in an interview with Samuel Eshun on the Happy Morning Show, he explained: “Up till now the benefits we derive from the deregulation is that the country has distanced itself from fuel pricing. The government does not come into debt through the subsidies it places on fuel prices because it has been deregulated.

    Today if you go to the market, you will get different prices from different oil companies which have not been of benefit to the ordinary person. If you own a car, you may have the option of where to buy your fuel. But the public transport operator does not have that option.

    So you cannot quantify or see the real benefit to the ordinary Ghanaian. This is because transport fares are across the board. For example, if the fare from Madina to Legon is GH?1.00, it is the same price for everyone although someone may buy their fuel at a lesser price than the other.”

    He added that the deregulation system had created disparities both in pricing and quality of fuel and that has been of no benefit to the end-user.

    Duncan Amoah advised that there needs to be a solution that will allow an average market price for everyone to benefit from.

    “I think we will have to have that conversation another day on whether we are to continue with the deregulation or we find a solution so that we can have average market pricing for everybody so that we strike out the dynamics and help everyone in the country”, he added.

    Source: happyghana.com

  • COPEC calls for a review of the deregulation policy in fuel pricing

    The Government of Ghana in June 2015 put in place a deregulation policy that had the expectation of allowing marketers and importers of petroleum products to set directly their own prices based on import parity costs, taxes, and margins.

    However, the Executive Secretary of the Chamber of Petroleum Consumers Ghana (COPEC Ghana), Duncan Amoah has said that the deregulation policy has only brought benefit to the Government and not the populace and as such the policy needs to be reviewed.

    Speaking in an interview with Samuel Eshun on the Happy Morning Show, he explained: “Up till now the benefits we derive from the deregulation is that the country has distanced itself from fuel pricing. The government does not come into debt through the subsidies it places on fuel prices because it has been deregulated.

    Today if you go to the market, you will get different prices from different oil companies which have not been of benefit to the ordinary person. If you own a car, you may have the option of where to buy your fuel. But the public transport operator does not have that option.

    So you cannot quantify or see the real benefit to the ordinary Ghanaian. This is because transport fares are across the board. For example, if the fare from Madina to Legon is GH?1.00, it is the same price for everyone although someone may buy their fuel at a lesser price than the other.”

    He added that the deregulation system had created disparities both in pricing and quality of fuel and that has been of no benefit to the end-user.

    Duncan Amoah advised that there needs to be a solution that will allow an average market price for everyone to benefit from.

    “I think we will have to have that conversation another day on whether we are to continue with the deregulation or we find a solution so that we can have average market pricing for everybody so that we strike out the dynamics and help everyone in the country”, he added.

    Source: happyghana.com

  • Check quality of Atuabo Gas COPEC

    In a statement issued by the COPEC, Executive Secretary, Mr. Duncan Amoah said that, “based on complaints from consumers of LPG produced from Atuabo, we maintain that the Propane level in Atuabo LPG is unnecessarily higher than expected, and this has been partly blamed for some of the rampant fires the country has seen over the past years including domestic and retail outlet fires as adduced to by the LPG marketers on public record”.

    “It is our value proposition that Atuabo checks these parameters going forward and also publish the P-B ratio of the gas it pumps onto the local market and where found to be higher in propane as our initial checks point to, causes a massive public education on the need to acquire storage bottles that are produced and specified as propane bottles together with the necessary cables to avert the rampant leakages due to the high pressures associated with the gas from Atuabo.”

    “Further, beyond the calling on Atuabo Gas Company to declare the ratio of Propane to Butane in the LPG produced, we also demand an independent public testing to be conducted on random samples picked from some retail outlets at some accredited laboratories in order to put to rest the quality/standard issues and the observed high pressures from gas supplied by Atuaboa” the statement noted.

    Among other demands, COPEC is also asking for, “an immediate review of the cost of LPG supplied by Atuabo to ensure Ghanaian LPG consumers do not continue to pay higher for locally produced gas whiles the imported one rather sells cheaper.”

    In a statement issued by the COPEC, Executive Secretary, Mr. Duncan Amoah said that, “based on complaints from consumers of LPG produced from Atuabo, we maintain that the Propane level in Atuabo LPG is unnecessarily higher than expected, and this has been partly blamed for some of the rampant fires the country has seen over the past years including domestic and retail outlet fires as adduced to by the LPG marketers on public record”.

    “It is our value proposition that Atuabo checks these parameters going forward and also publish the P-B ratio of the gas it pumps onto the local market and where found to be higher in propane as our initial checks point to, causes a massive public education on the need to acquire storage bottles that are produced and specified as propane bottles together with the necessary cables to avert the rampant leakages due to the high pressures associated with the gas from Atuabo.”

    “Further, beyond the calling on Atuabo Gas Company to declare the ratio of Propane to Butane in the LPG produced, we also demand an independent public testing to be conducted on random samples picked from some retail outlets at some accredited laboratories in order to put to rest the quality/standard issues and the observed high pressures from gas supplied by Atuaboa” the statement noted.

    Among other demands, COPEC is also asking for, “an immediate review of the cost of LPG supplied by Atuabo to ensure Ghanaian LPG consumers do not continue to pay higher for locally produced gas whiles the imported one rather sells cheaper.”

    Source: laudbusiness.com

  • COPEC, IES want BOST margin increased over COVID-19

    Civil Society Organizations (CSOs), the Chamber of Petroleum Consumers (COPEC), and the Institute of Energy Security (IES), have all supported calls by the Managing Director of the Bulk Oil Storage and Transportation (BOST), Edwin Provencal, that the margin should be increased.

    According to the CSOs, if the margin is increased, BOST can be in a position to hedge its prices to ensure stability in fuel prices in the country in the wake of the COVID-19.

    Mr Provencal has said there is the need for the BOST margin in the petroleum price build-up to be increased from 3 pesewas to 12 pesewas.

    He made these remarks when he met some Civil Society Organizations in the energy sector and a cross section of the media in Tema.

    He said: “You can see that a lot of our infrastructure are old. Some of them are as old as 26 years. A lot of them have broken down. We have almost 4 tanks here, which are out of service and we need money to fix them.

    “Now the BOST margin was solely meant for infrastructure maintenance. In 2011, the BOST margin was given to us at 3 pesewas. We are in 2020, some 9 years down the line where the dollar value has depreciated by 75%, but we are still getting the same 3 pesewas. That is why the infrastructure is falling apart,” he said.

    “Now we have to do something about it. We cannot, as Ghanaians leave this strategic asset to rot away. We are trying our best but we need help, hence the cry for help and for Ghanaians to support the increment of the BOST margin from 3 pesewas to at least some 12 pesewas if possible, so that we can deliver our mandate to the people of Ghana, ” he added.

    He further noted that, “In total, we would need about 150 million dollars to fix our infrastructure, but I mean we are not asking all of that from the government. All we are asking from the government is that it should give us the BOST margin so we can be equipped to maintain the existing infrastructure.”

    He, however, says there is a plan to upgrade and automate the whole depot to improve efficiency.

    “There are other projects we have to do, like upgrade and automate the whole depot which comes to about 47 million dollars. The other small projects that we have to undertake to enhance the efficiency of the depot also cost about 20 something million dollars. Those ones we can engage appropriate funding sources for some money because the projects can pay back,” he said.

    Executive Director of COPEC Duncan Amoah stated. “The only assurance we need is that whatever additional resource that government would have to pump in, whatever resources Ghanaians would add together to give to BOST, we would need that assurance that 6 months or 1 year from now, if we were to come back here to do this field trip or visit, the story here would be different.

    “Where you would not find either of the tanks rusting or decommissioned and are not working and pipelines that should have been upgraded to about 12 inches, are still doing 6 and 8 inches. That means that your flow rate is going to be quite low and that means you will lose all your competitive edge that you would have had in the downstream,

    “We are tempted to say that the new BOST agenda that the new MD is introducing could go far on condition that he will do as he says, on condition that other politicians will stay away and allow him the free hand to operate professionally.

    “We have said that once BOST is sound, the incessant increase in fuel prices that we witness on Friday, Saturday, Sunday, and even on public holidays would be managed. As a country this is the best company in Ghana that can hedge,” he added.

    For his part, IES Executive Director, Paa Kwasi Anamua-Sakyi said the government must divert the prize stabilization levy to BOST.

    “If they mean what they say, it would be a good call for all Ghanaians to support. One other thing we have come to realize as a Civil Society Organization from the desk of IES is that, the price stabilization recovery levy has not been able to stabilize prices for us.

    “The low prices we see today is just coming from the gains we have gotten from the world market, and so we may consider or government can consider diverting this price stabilization recovery levy to BOST, so that they can have enough funds to procure fuel, maintain their tanks and store enough fuel to manage both supply and price risk.”

    Source: laudbusiness.com

  • COPEC urges government to cushion oil and gas companies following lockdown

    The Chamber of Petroleum Consumers (COPEC) has called on the state to also cushion Oil and Gas Companies following the challenges brought on by the coronavirus pandemic.

    In a statement, COPEC said a lot of them “are reeling heavily under the harsh effects of our 3 weeks lockdown and subsequent low volumes and revenues which can increase job losses and redundancy within the country.”

    The chamber also called on the National Petroleum Agency (NPA) to also reduce the burden of license renewal fees charged to these companies “to enable them to adjust to the vagaries of the Coronavirus outbreak on their businesses.”

    This is to ensure “they keep fuel prices lower for Ghanaians without the tendency to increase or collect their full margins which can only lead to increases in pump prices.”

    COPEC finally called for an increased moratorium of the next six months for Oil Companies to file returns instead of the current moratorium which runs to July.

    It argued that “sales volumes across the board have reduced significantly and any attempts to enforce the earlier 21 or 45-day collections could only mean going to the banks to borrow which eventually places undue pressures on them to engage in all manner of games to survive.”

    Find below the full statement

    RESOLVE THE GCNET/UNIPASS ISSUE IMMEDIATELY TO CURTAIL ANY FUEL SHORTAGES ACROSS THE COUNTRY.

    The ongoing challenges in respect of revenue settlement following from a decision to migrate onto a new platform (UNIPASS) from the existing GCNet platform is leading to a lot of challenges with petroleum liftings across depots in the country.

    Oil Marketing Companies ( OMCs ) and the Liquified Petroleum Gas Marketing Companies ( LPGMCs ) that had orders for supply of fuel to various outlets could not load a single litre of fuel all day on Wednesday the 29th of April due to discrepancies in the migration onto the new customs system ( UNIPASS ) at the depots.

    A communique issued earlier yesterday from the NPA indicating a swift response to resolve the issue to enable the liftings seemed not to have yielded as most Oil Marketing Companies and the LPGMCs had to make alternative arrangements to accommodate their drivers who had been dispatched to load products from the depots across the country.

    This situation if left unresolved within the next 24 hours could and will certainly lead to serious fuel shortages across the country.

    One would expect that the new system would have been rolled out gradually side by side with the old system in order to help in facilitating a gradual phasing out of the existing system ( GCNet ) but the seeming haste in abandoning the old system whiles the new system ( UNIPASS) is not fully ready and integrated is clearly leading to discrepancies being witnessed and we wish for a speedy resolution to forestall any possible shortages across the country.

    Our attention has further been drawn to the cutting of staff numbers by some of our Oil Companies due to the adverse effects of Coronavirus on volumes and revenues through a lot of others have refused to lay off.

    In light of the above, we call on the State to ensure the various Oil and Gas Companies are not left out in the announced SME support as a lot are reeling heavily under the harsh effects of our 3 weeks lockdown and subsequent low volumes and revenues which can increase job losses and redundancy within the country.

    We further call on the Regulator of the downstream ( NPA ) to also work out a mechanism to ease down on the heavy license renewal fees charged to these companies to enable them to adjust to the vagaries of the Coronavirus outbreak on their businesses with the view to ensuring they keep fuel prices lower for Ghanaians without the tendency to increase or collect their full margins which can only lead to increases in pump prices.

    Finally, we will like to reiterate an earlier call on the Ghana Revenue Authority to give a moratorium for the next 6 months to Oil Companies instead of the current one spanning up to end of July to file their returns later than the current 45 days since sales volumes across the board has reduced significantly and any attempts to enforce the earlier 21 or 45-day collections could only mean going to the banks to borrow which eventually places undue pressures on them to engage in all manner of games to survive.

    Signed

    Duncan Amoah
    Executive Secretary

     

    Source: citinewsroom 

  • OPEC daily basket price $14.36 a barrel

    The price of OPEC basket of thirteen crudes stood at $14.36 a barrel on Wednesday, compared with $12.41 the previous day, according to OPEC Secretariat calculations.

    The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

    Meanwhile, Oman has announced its oil production adjustment plans effective 1 May 2020.

    Dr Mohammed Bin Hamad Al-Rumhy, Minister of Oil and Gas of the Sultanate of Oman, notified Mr Mohammad Sanusi Barkindo, OPEC Secretary-General, of the Sultanate’s plans to voluntarily adjust oil production as part of its commitment to the Declaration of Cooperation.

    The announced voluntary adjustments are based on the agreements reached at the 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on 9 April 2020 and the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on 12 April 2020.

    Source: opec

  • COPEC, Consumer Protection Agency sue NPA over new levy on LPG

    The Chamber of Petroleum Consumers and the Consumer Protection Agency have sued the National Petroleum Authority (NPA) over the introduction of the Cylinder Recirculation Recovery Margin which will allow LPG operators to start charging 13.5 pesewas for each kilogram of LPG.

    The two companies in their writ of summons argue among others that the NPA failed to consult with various stakeholders before introducing the policy.

    “Plaintiffs state that the failure of the 1st defendant to consult with the service providers before the introduction of the new petroleum pricing formula has led to agitations among such service providers, particularly, the LPG Marketing Companies Association of Ghana (LPGMCs) who have issued a statement calling on the 1st defendant to withdraw the CRM.”

    The plaintiffs are thus seeking a declaration that the Cylinder Recirculation Recovery Margin be declared unlawful on grounds that the Chief Executive Officer (CEO) of NPA, Hassan Tampuli failed to consult the NPA Board before introducing the policy.

    “A declaration that the failure of the 2nd Defendant [Hassan Tampuli] to secure the approval of the 1st Defendant  [NPA] board before announcing the new LPG cylinder recovery margin was unlawful,” portions of the writ said.

    Purpose of Cylinder Recirculation Model

    The NPA on Wednesday, April 1, 2020, directed industry players to begin 13.5 pesewas charge on each kilogram of LPG.

    It also instructed Oil Marketing Companies to increase the levy on Fuel Marking Margin from three pesewas to 4.5 pesewas per litre on every product.

    According to the NPA, the introduction of the Cylinder Recirculation Recovery Margin is to support stakeholders in the supply chain ahead of the implementation of the Cylinder Recirculation Model.

    Although the NPA has justified the move, some industry watchers have however said that both directives are unlawful and must be withdrawn with immediate effect given the impact it will have on the business.

    NPA in its release issued on Friday, April 4, 2020, maintained that such calls are unfortunate because its projection rather shows that for this very pricing window (1st April to 15 April, 2020), consumers are expected to enjoy a price reduction of about 11.56 percent even with the introduction of the Cylinder Recovery Margin.

    “The attention of the National Petroleum Authority (NPA) has been drawn to a statement issued by the LPG Marketing Companies Association of Ghana (LPGMCs) on the above subject, dated April 3, 2020, calling for the withdrawal of GHp 13.5 Cylinder Recovery Margin which took effect on April 1, 2020. We wish to state categorically that, contrary to their claim that the introduction of the margin will increase the product price at the pumps and thereby burden the consumer, the facts as they stand do not support that.”

    “The margin is, therefore, to assist the marketers to offset some of their financial expenses, in accordance with the full cost recovery principle of petroleum products pricing in Ghana. It is therefore unfortunate for the LPGMCs to hold such a position”, it added.

    The NPA had said it will continue to engage in this and other related issues of mutual concern over the concerns raised regarding tax components on LPG.

    “We are certainly aware of the difficult situation we all find ourselves in at this time, and the last thing we will do is to further burden the consumer with additional taxes. The NPA would, therefore, like to assure members of the general public of our commitment to ensure product availability, affordability, and accessibility, while ensuring the safety of the general public and the business viability of players across the value chain”, the statement concluded.

     

    Source: citinewsroom 

  • Oil prices rebound on hopes for output cut deal

    Oil prices rebounded Tuesday on fresh hopes an OPEC-led meeting this week will reach an agreement to reduce oversupply and shore up the market.

    Prices have fallen sharply since expectations for a quick deal to cut output levels were dashed, but the rescheduling to Thursday of a meeting of major crude producers boosted sentiment.

    US benchmark West Texas Intermediate was up 3.83 percent to $27.08 a barrel in Asian morning trade.

    A barrel of Brent crude, the international benchmark, was trading 2.81 percent higher at $33.98.

    Prices fell to 18-year lows last week as the market wallowed in oversupply arising from a price war between Saudi Arabia and Russia, which have ramped up production.

    “Prices recovered some of the early losses, as both Russia and Saudi Arabia suggested they would be willing to cut production but only if the rest of the world followed suit,” ANZ Bank said in a note.

    “The stumbling block appears to be the US, which is reluctant to join an agreement.”

    But with US Energy Secretary Dan Brouillette holding talks with Saudi Arabia and Russia, “the market is hopeful of some sort of agreement,” the bank added.

    OPEC is the Organization of the Petroleum Exporting Countries of which Saudi Arabia is the biggest producer, while Russia is not an OPEC member.

    “Ultimately there is hope that cooler heads will prevail, and producers will reconcile and formulate a response that puts a floor under oil prices,” said AxiCorp global market strategist Stephen Innes.

    “Still, the challenge remains to the extent which producers are willing to cut.”

    Source: France24

  • COPEC demands immediate government intervention in stabilizing fuel prices

    The Chamber of Petroleum Consumers Ghana (COPEC) wants the government to apply the price stabilization levy to cushion consumers from a likely increase in the cost of fuel.

    Already, industry players have predicted a hike in fuel prices at the pumps by about two percent this month.

    This prediction is premised on among other things, volatilities in crude oil prices on the world market.

    But in a statement signed by the Executive Secretary of COPEC, Duncan Amoah, the Chamber called on government through the National Petroleum Authority (NPA) to save Ghanaians further from hardships in the new year.

    COPEC threatens court action over fuel hike

    “The issue of high incidents of taxes on the fuel price build up once again comes to the fore, the continuous charging of some outdated taxes such as the price stabilization and recovery levy ( PSRL ) and the special petroleum tax ( SPT ) clearly need to be looked at once again following from the instability in Gulf and the likely effects it will have on global petroleum prices this first quarter of 2020.”

    COPEC further argued that the impending increases of almost 30 pesewas per liter if left unattended to will simply bring further hardships and increases in the cost of living across the country, hence the intervention.

    “An immediate intervention by the National Petroleum Authority by way of review in the price stabilization and recovery levy will most likely forestall this very harsh increases that Ghanaians are likely to be greeted within this new year.”

    “We implore the government to be up and doing whiles calling on the various Oil Marketing Companies to hasten slowly with these increases as we dialogue to see if there will be some relief from the Central Government between now and early next week”, the statement concluded.

    Prosecute persons who supervised cancelled PDS deal within 14 days COPEC to government

    IES predicts two percent fuel price increase in New Year pricing window
    Two days into 2020, the Institute of Energy Security (IES), predicted an increase in fuel prices at the pumps when oil marketing companies review their prices in the first pricing window in January.

    The energy policy Think Tank explained that the drivers of the potential increase include a four percent increment in prices of crude oil as well 4.59% and 5.05% increment in the prices of gas oil and gasoline on the international market respectively.

    On the basis of the price movement, the Institute said it foresees prices of fuel on the local market potentially increasing marginally despite the cedi recording some marginal gains against the dollar within the period.

    “However, the increases could be averted or its impacts minimized if the National Petroleum Authority (NPA) applies the Price Stabilization and Recovery Levy (PSRL),” the IES advised.

    Fuel prices within the second Pricing-window of December 2019 saw the majority of the Oil Marketing Companies (OMCs) maintaining the prices of Gasoline and Gasoil unchanged.

    Source: citinewsroom.com