OMCs required to guarantee reduction in fuel prices under gold for oil programme
The National Petroleum Authority (NPA) has recently announced that Oil Marketing Companies (OMCs) which purchase petroleum products under the government’s Gold for Oil (G4O) Programme will be required to sign an undertaking guaranteeing a reduction in their prices at the pumps.
The decision is a significant step towards ensuring that consumers benefit from the programme, which the government introduced in November 2022 as an innovative measure to exchange gold for petroleum products instead of US dollars.
The NPA’s announcement is a clear indication that Ghana is taking concrete steps towards improving the lives of its citizens through effective economic policies.
Under the G4O Programme, Ghana recently took delivery of 40,000 metric tonnes of petrol and 35,000mt of diesel. This follows the 40,000mt of diesel that arrived in the country last month. Speaking in an interview with the Ghana News Agency, Abass Ibrahim Tasunti, head of economic regulation at the NPA, expressed optimism that the new arrival would lead to a “minimal reduction” in fuel prices at the pumps.
This is a positive development for consumers who have long struggled with high fuel prices, which have often had a significant impact on the cost of living.
As part of the implementation criteria, OMCs that are interested in participating in the G4O Programme will be required to sign the undertaking. Companies that fail to comply with the agreed requirements will be sanctioned. The undertaking is being signed in all the terms and conditions to ensure that the requirements or guidelines the OMCs are supposed to meet, including the reduction in prices for G4O products, are met.
This approach is an important part of the government’s efforts to ensure that the G4O Programme delivers on its promises and benefits the citizens of Ghana.
The government announced the gold for oil policy last year, with the aim of reducing the demand for dollars for the importation of petroleum products and by extension, reducing the rate of depreciation of the cedi.
It is estimated that Ghana requires about US$400m to import petroleum products monthly, out of which the Bank of Ghana can only supply US$120 million to petroleum importers. The G4O Programme is therefore a significant step towards reducing the country’s dependence on dollars and strengthening its economy.
The NPA has indicated that only OMCs with at least 45 outlets across the country would be eligible to lift the latest consignment under the G40 Programme. This move is an important step towards ensuring that consumers feel the impact of the programme in terms of a reduction in prices of petrol and diesel at the pumps.
The Authority said the move would ensure that consumers feel the impact of the programme in terms of a reduction in prices of petrol and diesel at the pumps.
The NPA’s announcement is a positive development for the citizens of Ghana. The G4O Programme has the potential to significantly improve the country’s economy and reduce the cost of living for its citizens.
By requiring OMCs to sign an undertaking guaranteeing a reduction in their prices at the pumps, the government is demonstrating its commitment to ensuring that the programme delivers on its promises.
It is now up to OMCs to comply with the agreed requirements and contribute to the economic growth and development of Ghana.
