- November 3, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
The Institute of Energy Security’s CEO, Nana Amoasi VII, has questioned the prudence in government’s efforts to obtain inexpensive fuel.
Nana Amoasi VII said the venture is far from possible.
President Akufo-Addo in his address to the nation on Sunday, October 30, 2022, announced that the government is working to secure a reliable and regular sources of affordable petroleum products for the Ghanaian market.
According to him, if this arrangement is successful, coupled with a stable currency, it will halt the rise in fuel prices and provide relief to Ghanaians.
Meanwhile, information available to JoyNews indicate that a government delegation is in Abu Dhabi negotiating a deal to bring petroleum products onto the Ghanaian market.
The Deputy Energy Minister, Andrew Egyapa Mercer, Managing Director of Bulk Oil Storage Transportation Limited, Edwin Provencal and, Perry Okudzeto, Deputy Chief Executive of NPA are the key members leading the negotiation.
However, speaking in an interview on Joy FM’s Top Story on Wednesday, the IES CEO cautioned the team to be careful in their quest.
This, he explained, is because no international market would be willing to give out petroleum products at a cheap discount.
“I don’t know who is advising the Energy Minister, because the venture they are undertaking is far from possibility. This is not how the energy sector works, so they should be careful,” he said.
Nana Amoasi VII hoped that the quest to get cheap and reliable fuel is not an attempt to “waste the country’s meagre resources or an attempt to enrich a few people to the detriment of over 30 million Ghanaians or a deliberate attempt to grow the energy sector debt.”
He noted that given the case that the team is successful in their quest, they should be made to declare the full discount value they are able to negotiate.
“They must tell Ghanaians what they also gave in return for that favour. And also, we must be very careful, our fear as IES is that they could be giving out something for free in order to get that discount.
“If there is a market that can give you a cheap discount to beat all the markets all over the world, I am sure the BDCs would have gone for it. So let us be careful of the venture that we are undertaking,” he cautioned.
In a related development, the Ranking Member on the Energy Committee in Parliament, John Jinapor has cautioned the government against its plans to secure cheaper petroleum products for the Ghanaian market.
He argued that nowhere across the globe, would the government obtain petroleum products at the much cheaper price and discounted margins it is looking for.
“In this petroleum industry, there is nothing like free lunch. They also have their challenges, but more specifically like I stated we are expecting some timelines from the President probably within one month or two months or three weeks or one week,” he told Evans Mensah.