Ghana is likely to lose about 7 million cedis in revenue following attempts by the Bulk Oil Storage and Transportation Company Limited (BOST) to sell contaminated fuel to some oil marketing companies.
Documents sighted by Citi Business News indicate that BOST has agreed to sell about 5 million litres of contaminated fuel to Movenpinna Energy.
The documents indicated that as at Wednesday, June 21st, 2017, BOST has agreed to sell off an estimated 186,000 litres of contaminated fuel to the oil company.
BOST is selling the product at 1 cedi per litre higher than proposed 90 pesewas by the Movenpinna Energy.
But the Principal Research Analyst at the Institute of Energy Security (IES), Richmond Rockson tells Citi Business News the move must be stopped to save consumers from the harmful effects of the unwholesome product.
“For BOST to be selling this quantity to individuals at that amount is just unfortunate; government should not be seen as leading the way when it comes to selling contaminated fuel unto the market. If BOST is to be selling the product at a cost of 2.50 per litre, then we would be talking about 12 million cedis but we understand it is being sold at 1 cedi per litre so we realize the amount of money that Ghana is losing,” he stated.
Richmond Rockson further queried why the state oil distributor will agree to sell off such huge quantities granted it is even being requested by manufacturing companies such as soap making ones.
“If we had given the product to TOR, we could have blended it to get the specification that is needed. The effect of this product on the market is dangerous; aside the pollution, it is also going to damage our vehicles. We know that people will come buying it for soap making but which company in Ghana has the capacity to buy 5 million litres of such product,” he opined.
He argued that the apparent inability of regulators to track the amount of contaminated products sold off could increase the hazards associated with the development.
“We know that it is difficult for state institutions to monitor where these fuel go to since eventually they end up at our filling stations. So we find it very intriguing that this quantity of contaminated fuel will be put into the market because easily it will go to the fuel stations which will get to the final consumer.”
The development comes months after the National Petroleum Authority (NPA) uncovered a syndicate of companies involved in the illegal sale of petroleum products at the country’s ports.
The situation is said to have rendered some legitimate Oil Marketing Companies (OMCs) uncompetitive over unfair pricing on the market.
About 4000 direct and indirect jobs are likely to be lost as a result if the appropriate authorities fail to intervene.
BOST is however yet to officially comment on the latest development.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana