Speaking earlier at a news conference in Accra, the Executive Secretary of COPEC, Duncan Amoah, said the deal, which cost the country a revenue loss of GHc30 million through the sale of 1.8 million barrels of crude oil to BB Energy, was avoidable.

The Executive Secretary of COPEC , Duncan Amoah on Eyewitness News explained that investigation by the Special Prosecutor has become necessary, given that the said transaction was fraught with some inconsistencies.

[contextly_sidebar id=”p3EdpmEGd66bRaagq34hBzQsF9XOZpEf”]“We think that circumstances surrounding the fields are still shrouded in a lot of shady activities. We have questioned the need to provide an instant transaction that was secured. Why will you sell to a company that has no license at all to do so? There are a lot of inconsistencies as far as this crude transaction is concerned, and we believe that the Special Prosecutor just like all well-meaning Ghanaians, would want to get to the bottom of this matter to see where certain things were not done right.”

Mr. Amoah believes a thorough investigation by the Special Prosecutor will also avert the huge debt hanging on BOST and other petroleum companies.

“Certain financial laws might have been occasioned, we would want to see to it that issues are corrected so that going forward, the kind of debt that we have today hanging on BOST and other petroleum companies will be averted and the consumer will not be asked to pay for it another time.”

Duncan Amoah had earlier accused BOST of causing financial loss to the state in the alleged sale of crude oil to BB Energy below the international market price.

The Managing Director of BOST, Obeng Boateng, however rubbished these claims, describing them as false and baseless.

Mr. Obeng Boateng said Duncan Amoah was simply an “enemy to the progress” and should “be ignored at all times.”

BOST MD sues Duncan Amoah

He subsequently sued Duncan Amoah, demanding GHc5 million in damages.

According to Mr. Obeng Boateng, Mr. Amoah made a false claim when he suggested that he [ Alfred Obeng Boateng] through his agents, had threatened to take his life, following the fresh allegations of financial malfeasance he leveled against him and the BOST.

Energy committee to probe BOST

The Mines and Energy Committee of Parliament also waded into the controversy, saying it will probe the matter.

The Chairman of the Committee, Emmanuel Akwasi Gyamfi said BOST and other interested parties in the matter will be engaged to better inform the Committee on how to deal with the issue.

“We engaged BOST before this issue came up, and we were scheduled to meet them again when this issue came up. We want to take our time and meet them and do proper due diligence; we have to get the necessary documentation so that we can reach an informed decision,” he said.

2017 contaminated fuel scandal

In 2017, BOST was widely criticized for selling 5 million litres of contaminated fuel to two unlicensed companies, Movenpinaa and Zup Oil, which were allegedly set up a few days before the sale, costing Ghana about GHc 7 million in revenue.

The National Petroleum Authority (NPA) also confirmed that the two companies alleged to have purchased the over 5 million litres of contaminated fuel under suspicious circumstances from BOST were not licensed.

According to the NPA, it was going to take legal action against the firms, while it conducted further investigations.

The Energy Minister, Boakye Agyarko, also set up an investigative committee to look into the matter, which eventually cleared BOST and its Managing Director, Alfred Obeng Boateng of wrongdoing, citing a Bureau of National Investigation (BNI) and National Security reports.

There were however calls to initiate fresh investigations into the matter amid discontent from the Minority in Parliament and some Civil Society groups.

As a result of the scandal, the Energy Minister stated that private firms were no longer allowed to lift contaminated oil from BOST as part of interim measures to prevent the supply of contaminated fuel onto the Market.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post COPEC officially petitions Special Prosecutor to probe BOST appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking at a Press conference in Accra, the Executive Secretary of COPEC, Duncan Amoah, said the deal, which cost the country a revenue loss of GHc30 million through the sale of 1.8 million barrels of crude oil to BB Energy, was avoidable.

[contextly_sidebar id=”VPRA0C8gAs3tR5ZyTHuiN8GpQUfcZ5ww”]“These were avoidable losses, completely avoidable and we have said that these monies could have come to the state. BOST would need to come again. All they’ve tried to do are gymnastics…and that is the more reason we have decided as a chamber to pursue this matter to the logical conclusion through the Special Prosecutor’s office. A lot of questions remain unanswered.  We released a single report and BOST have had to somersault seven times in one week,” he added.

[contextly_sidebar id=”VPRA0C8gAs3tR5ZyTHuiN8GpQUfcZ5ww”]Duncan Amoah last week accused BOST of causing financial loss to the state over the alleged sale of crude to BB Energy below the international market price.

The Managing Director of BOST, Obeng Boateng, however rubbished the claims and described them as false and baseless.

Mr. Obeng Boateng said Duncan Amoah was simply an “enemy to the progress” and should “be ignored at all times.”

But the COPEC Executive Director at the press conference said he stands by his claims.

“It is not surprising that BB Energy wrote two months after the shameful purchase of the crude from BOST for license from the NPA which was declined. Our checks further indicate that BB Energy as of today is still paying for the crude. They have not finished paying six months after the transaction. What we gather further is that when TOR processes the crude, BB Energy picks and makes payments to BOST. So like we’ve said earlier, what really changed is the ownership and giving of the product to BB Energy. Nothing useful, nothing purposeful, no gain ever came to Ghana as far as that crude is concerned.”

“When BOST engages in these inefficient transactions that leave BOST with huge debts, it is not the BOST managing Director or anyone at BOST that is paying for it. It is the average Ghanaian who will be asked at a later day to pay it.  As we speak, BOST is reeling under a debt of almost GHc900 million,” Duncan Amoah added.

Energy committee to probe BOST

The Mines and Energy Committee of Parliament had already waded into the latest controversy saying it will probe the matter.

According to the Chairman of the Committee, Emmanuel Akwasi Gyamfi, BOST and other interested parties in the matter will be engaged to better inform the Committee on how to deal with the issue.

“We engaged BOST before this issue came up, and we were scheduled to meet them again when this issue came up. We want to take our time and meet them and do proper due diligence; we have to get the necessary documentation so that we can reach an informed decision,” he said.

BOST MD sues Duncan Amoah

Alfred Obeng Boateng, has subsequently sued Duncan Amoah demanding GHc5 million in damages.

According to Mr. Obeng Boateng, Mr. Amoah made a false claim when he suggested that he [ Alfred Obeng Boateng] through his agents, had threatened to take his life, following the fresh allegations of financial malfeasance he levelled against him and the BOST.

2017 contaminated fuel scandal

In 2017, BOST was widely criticized for selling 5 million litres of contaminated fuel to two unlicensed companies, Movenpinaa and Zup Oil, which were allegedly set up a few days before the sale, costing Ghana about GHc 7 million in revenue.

The National Petroleum Authority (NPA) also confirmed that the two companies alleged to have purchased the over 5 million litres of contaminated fuel under suspicious circumstances from BOST were not licensed.

According to the NPA, it was going to take legal action against the firms, while it conducted further investigations.

The Energy Minister, Boakye Agyarko, also set up an investigative committee to look into the matter, which eventually cleared BOST and its Managing Director, Alfred Obeng Boateng of wrongdoing, citing a Bureau of National Investigation (BNI) and National Security reports.

There were however calls to initiate fresh investigations into the matter amid discontent from the Minority in Parliament and some Civil Society groups.

As a result of the scandal, the Energy Minister stated that private firms were no longer allowed to lift contaminated oil from BOST as part of interim measures to prevent the supply of contaminated fuel onto the Market.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post COPEC to petition Special Prosecutor to probe BOST appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to Mr. Obeng Boateng, Mr. Amoah made a false claim when he suggested that he [ Alfred Obeng Boateng] through his agents, had threatened to take his life, following allegations of financial malfeasance he leveled against him and the BOST recently.

[contextly_sidebar id=”iiF60ZMI5A5rbLvf1VnnwpHkunw0P4Vj”]The suit, which is expected to be moved on 23rd March in the High Court said: “ The plaintiff/applicant herein praying this honourable court for an order of injunction restraining the defendant/ respondent herein, his agents, assigns, workmen, and all persons claiming through or under him from further publishing or broadcasting any word or words or images in any manner whatsoever to the effect that plaintiff had coopted, engaged, contracted or solicited the services of any person or persons to curse, insult, attack, threaten the life of the defendant or threaten to kill defendant in three days pending a final determination to this suit upon terms more particularly stated in the accompanying affidavit.”

He is, therefore, asking the court to slap a GHC2 million damages against the defendant for damaging his professional reputation; 2 million cedis for damaging his social reputation and 1 million cedis for the psychological trauma the death threat publication has had on him.

Duncan Amoah had claimed his life was in danger after he uncovered a supposed shady deal at BOST which is believed to have cost the nation GHC 23 million in revenue.

According to Duncan Amoah, about 1.8 million barrels of crude oil was sold at a discount to an unlicensed company known as BB Energy.

He indicated that some unidentified assailants allegedly linked to Mr. Obeng had since this revelation  vowed to eliminate him in three days.

Mr. Obeng, in a rebuttal, however dismissed these claims, saying the COPEC boss was being used to distract the new BOST administration.

The BOST MD held that if Duncan Amoah had genuine concerns, he would have approached BOST through more appropriate avenues as opposed to public utterances.

“If Duncan Amoah meant well, the first thing to do is to find out the rationale behind such decision be it commercial or not. But you cannot just get up and issue such statement that has potential to damage reputation of your fellow human beings and the very company that belongs to all of us as Ghanaians because of your individual interest of looking for cheap money.”

Mr. Obeng Boateng lamented further that, “everyday management [of BOST] is having crisis meeting because of these false and misleading publications thereby preventing management from concentrating on its core mandate.”

“Ghanaians and the media should not allow this selfish individual to fool us by placing his interest above the national interest, he added.

Explanation for ‘discount’

Mr. Obeng Boateng noted that, the oil in question could not have been sold at the official price because of the amount of time that had passed between the time of purchase and sale.

“In his [Duncan Amoah] statement, he exposed his ignorance when he stated that at the international level Quaibo Crude is sold at Brent plus $0.85 per barrel as official price, and therefore BOST has caused financial loss to the state by selling its own at a discount of $2 per barrel. It must be noted here that a cargo imported with the aim of refining or using for one purpose but did not materialize and reselling it about 10 months later, cannot be sold at the official price. Such a product is considered distress and is always sold at a discount globally.”

“As we speak, BOST has offers for such distress cargoes at a discount of $4 per barrel. Any person competent in the industry would have asked for the details before issuing this illogical and baseless statement actuated by malice and selfish interest to mislead the good people of Ghana. Thus keeping the crude for such a period may affect the quality and for that matter the yield, hence the assay is a factor in pricing,” he explained.

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By: Marian Ansah/citifmonline.com/Ghana

The post BOST MD sues Duncan Amoah over ‘death threat’ claims appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the taxes have been incorporated into government’s revenue projections for the year and any attempt to scrap any of them could spell doom for the current revenue structure.

Speaking on the Citi Breakfast Show on Wednesday, Mr. Tampuli however added that government is putting in place measures to alleviate the plight of petroleum consumers.

[contextly_sidebar id=”8ZxnyvwNnU8qUizzoKuNnq73qPxqJnEM”]“You would agree with me that government has some obligations and these obligations are based on the projected revenue and the revenues that we have accrued. These revenues include the price stabilization and recovery levy. Now that lots of revenue for the government.”

“If you are saying that we should remove completely the Special Petroleum Tax, price stabilization levy among others, then you are just asking for the collapse of the revenue as far as government projects are concerned. What government is doing is in a way responding to the needs and concerns of the Ghanaian people by reducing the price figure by 3%,” he added.

COPEC, ICU demo

The NPA CEO’s made the remark after a demonstration in Accra, organized by the Chamber of Petroleum Consumers (COPEC) in collaboration with the Industrial and Commercial Workers Union (ICU), seeking to force the government to reduce taxes on petroleum products.

Currently, a litre of both petrol and diesel goes for GHc4.62 at some major fuel stations.

This is despite assurances from the NPA that prices will remain fairly stable at the pumps.

The NPP government while in opposition also promised to scrap some taxes on petroleum taxes it described as “nuisance” taxes.

But one year after assuming office, there has been pressure on the  NPP government to honour its promises after it reviewed only a few of the taxes instead of scrapping them completely.

Response to COPEC, ICU demonstration

Responding to concerns raised by the demonstrators, Mr. Tampuli said “government is not interested in seeing that the people of Ghana go through some hardship,” hence his call that they should exercise patience.

“Whatever it is that we do, we give cushion to the Ghanaian consumers…The Minister for Energy has said it several times that government is considering different options aimed at dealing with this situation. So they should be rest assured, they have every right to demonstrate but we are saying that the reason for the demonstration is not as tenable as they want us to believe especially when the prices could have gone way higher than it has but for the intervention of government and there are records there to show,” Mr. Tampuli added.

Click below for Hassan Tampuli’s interview on the Citi Breakfast Show: 

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Scrapping fuel taxes will ‘collapse’ Govt’s revenue structure – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.

Industry watchers argue that consumers risk being shortchanged, if the regulators fail to regulate the application of the levy.

The comments come in the wake of marginal rise in the prices of petroleum products for the first two weeks (1^st to 15^th) of February 2018.

This is the second time in a row that consumers have had to pay a little more for fuel at the pumps.

The first occurred with the second pricing window in January 2018.

Checks by Citi Business News for instance show that major oil marketing companies such as Total, Goil and Shell have increased their prices by some 4 pesewas; to 4 cedis 67 pesewas per litre each of diesel and petrol.

Price stabilization levy overstayed?

The price stabilization levy was first applied in December 2017, as a windfall tax.

At the time, the decision was to cut down on the supposed excessive profits to be made by the Oil Marketing Companies (OMCs) due to the continuous drop in oil prices on the global market.

All things being equal, the government is expected to phase the levy out by the end of this month – February 2018.

But the Principal Research Analyst at the Institute of Energy Security (IES), Richmond Rockson tells Citi Business News the failure to come out with a successive plan, leaves much anxiety among consumers.

“In December, the government said it is putting in place the mechanisms for three months but we were of the view that this is not sustainable as it could only last as a temporary measure. But we need a long term solution which is to review the price build up and that is where all the price components are derived,” he asserted.

The Executive Secretary of the Chamber of Petroleum Consumers, Duncan Amoah couldn’t agree more to this.

In his view, the swiftness in introducing the levy has not been the same regarding concerns by industry and consumers on how the marginal rise in prices of crude oil is affecting the ordinary Ghanaian.

NPA yet to respond

The National Petroleum Authority (NPA) is yet to comment on the matter.

In the meantime, the groups want government to review major tax components that have been slapped on the price build ups of petroleum products to bring relief to consumers.

COPEC embarks on demonstration

In a related development, COPEC is embarking on a demonstration on Wednesday, February 7, 2018 to protest the persistent hikes in the prices of petroleum products.

The demonstration, is in collaboration with the Industrial and Commercial Workers’ Union (ICU).

It will culminate in presenting a petition to the Ministries of Energy and Finance, Parliament and the Office of the President.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Consumers demand disclosure on petroleum price stabilization levy appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the Chamber, the demonstration, which is in collaboration with the Industrial and Commercial Workers Union (ICU), is to force government to further reduce taxes on petroleum products.

[contextly_sidebar id=”DjkxFhkKDJtxL69KPohecgNiodfhOeO3″]Consumers have had to pay more at the pumps for a better part of 2017, and in January 2018, prices went up due to rise in oil prices, and the cedi’s marginal depreciation.

Currently, a litre of both petrol and diesel, go for 4 cedis 62 pesewas at some major fuel stations.

This is despite assurances from the National Petroleum Authority (NPA) that prices will remain fairly stable at the pumps.

Speaking to Citi News, the Executive Director of COPEC, Duncan Amoah, called on government to review prices of petroleum products.

“We are paying close to five dollars in order to be able to get petrol to your tank. That clearly is not helping anything. We understand very well that some of the taxes were introduced as windfall taxes at the time that world market prices had dropped so low and Ghana needed a little more revenue in order to be able to cushion the world market prices that have gone down.”

“Today, the same dynamics are not at play. Unfortunately, the taxes that were introduced which should have gone by now, are still all in place. Ghana selling petrol above 20 cedis and it is still going up, it cannot be sustained. We need an immediate review of the price build up. We need some reduction. We need some stability in order to plan our spending on petroleum products in the country.”

Fuel prices to rise by 2% in February – IES

The Institute of Energy Security (IES), had earlier predicted that prices of fuel may go up by 2 percent in the first pricing window in February, between February 2, 2018 and February 15, 2018.

The IES further attributed the development to the constant rise in crude oil prices which is currently selling at 69 dollars per barrel on the international market, among other factors.

“Crude oil prices have gone up on the international market and it is still rising; as we speak the cost of a barrel of oil is averaging around 69 dollars from a previous average of 67.7 dollars. That’s a rise of about 2 percent. The finished product that’s gasoline and gas oil prices have also gone up on the international market,” Principal Research Analyst at the IES, Richmond Rockson had told Citi Business News in an interview.

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By: Marian Ansah & Fred Djabanor/citifmonline.com/Ghana

The post COPEC, ICU to demonstrate over fuel price hikes appeared first on Citi 97.3 FM - Relevant Radio. Always.

In a statement, COPEC said it checks had revealed that there has been a 4 percent increase in fuel prices at some pumps.

[contextly_sidebar id=”XZIsLV5PrrM2S6oyr5OXtXKadfS0zG0K”]”Fuel prices that used to trade at GHc4.490/litre for both petrol and diesel, have seen an increase to GHc 4.670, a difference of about 18p or some 4.008% increases,” COPEC said.

The Chamber called on the government to take a second look at the current price build up as it believes “these increases will continue for a very long time if nothing is done about the pricing template and the numerous taxes.”

“These increases coming on the back of an earlier threat by the GPRTU on its intended transport fare increases will certainly put a lot of pressure on the consuming and commuting public,” it added.

Activation of stabilization levy

At the end of 2017, the NPA announced that prices of petrol and Liquefied Petroleum Gas (LPG) would remain fairly stable at the pumps from January 1.

The Authority added that, it had activated the Price Stabilization and Recovery Levy to prevent the potential increase in the price of diesel.

Before this, the NPA had directed all Oil Marketing Companies and LPG Marketing Companies to use revised prices in the Price Stabilization and Recovery Levy Act to control recent price increases in petroleum products.

This followed a directive from the Ministry of Energy following fluctuations in the prices of petroleum products due to strong political and economic influence from oil-producing countries across the world.

Find below the Chamber’s full statement

CHAMBER OF PETROLEUM CONSUMERS-GHANA

4% FUEL PRICE INCREASES

PRICES CURRENTLY GOING UP AT THE PUMPS.

Contrary to an earlier notice on January 1, 2018 by the National Petroleum Authority, indicating some interventions to keep fuel prices stable at the pumps through the month of January, we can confirm that fuel prices across some pumps have been adjusted by as much as 4%, today the 4th day of January.

Fuel prices that used to trade at Ghc4.490/litre for both petrol and diesel have seen an increase to 4.670 a difference of about 18p or some 4.008% increases.

Our roving team continues to keep an eye on the development as well as increases across the other pumps.

These increases coming on the back of an earlier threat by the GPRTU on its intended transport fare increases will certainly put a lot of pressure of the consuming and commuting public.

We reiterate our calls on the government to take a second look at the current price build up as we believe these increases will continue for a very long time if nothing is done about the pricing template and the numerous taxes.

Signed: Duncan Amoah, Executive Secretary, Copec Ghana

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Fuel prices go up by 4% despite NPA’s assurances – COPEC appeared first on Citi 97.3 FM - Relevant Radio. Always.

As a result, the Chamber of Petroleum Consumers (COPEC) is urging consumers to disregard reports of reduction in fuel prices due to the development.

The NPA has directed all Oil Marketing Companies (OMCs) to review the prices of their products to reflect a 70% reduction in the price stabilization and recovery levy component of the price build up for diesel and Liquefied Petroleum Gas (LPG).

The decision also follows recent fluctuations in the prices of petroleum products due to strong political and economic influence from oil-producing countries across the world.

But COPEC explains that the absence of any reduction in prices at the pumps is also influenced by the cedi’s depreciation.

“Previous exchange figures of GH¢ 4.56/$1 shot up to GH¢ 4.67/$1 thereby creating a forex differential of some 11p/$1 or some 2.41% within the past two-week window,” it said in a statement on Friday.

COPEC added, “International market prices for the two week window for both white products saw a mixed bag, Gasoil saw an increase of about $3.5 per metric to close trading at around $560.5 per metric from the previous window figures to $557.0metric, gasoline went down by $18 per metric to close trading at $605 per metric.”

According to the Executive Secretary of COPEC, Duncan Amoah, the above situation should have escalated prices of petroleum products but for government’s intervention.

As a result, OMCs are selling their products for 4 cedis 49 pesewas per litre each of diesel or petrol, on the average.

The price stabilization and recovery levy is but one of the eight components of the petroleum price build-up (PBU).

Hence, an impact of its reduction will be felt when ex-refinery prices (the price at which BDCs purchase petroleum products) are declining on the global market.

Meanwhile, COPEC has urged that government reviews the Special Petroleum Tax component to cushion consumers from any shocks from global price fluctuations.

“We commend the government for the timely intervention to arrest further price hikes at the pumps and will urge the government to review the special petroleum tax (SPT) on the price build to bring down fuel prices as the coming year will be a very difficult one for consumers across the country if the current price build-up is left to continue causing any further escalation in fuel prices in the country.

“It is our belief that the fixing of the special petroleum Tax to a specific amount or a movement from the current 15% on Ex-Depot to an Ex-Refinery position as the levels continues to remain very high, accounting for over 47% on current ex-pump prices,” COPEC concluded.

Ex-pump prices remain unchanged

Citi Business News’ checks across some OMCs in the capital on Friday, December 1, 2017, showed that most prices have not been changed.

Some station managers, however, indicated that any review could only be effected unless sanctioned by their respective corporate managers.

Total, GOIL and Shell are all selling a litre of diesel and petrol at 4 cedis 49 pesewas each.

However, Champion Oil is selling a litre each of petrol and diesel for 4 cedis 47 pesewas.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Fuel prices remain unchanged at pumps appeared first on Citi 97.3 FM - Relevant Radio. Always.

Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, made this claim on the Citi Breakfast Show on Wednesday, on the back of the National Petroleum Authority’s revelation of massive premix fuel diversions nationwide.

According to him, the premix fuel which is specifically to be used by fisher-folk, are not only diverted and sold to industries, but are also sold by some fuel stations who mix them with petrol and sell to unsuspecting motorists.

[contextly_sidebar id=”8SCEChwondQUBaikPYrpo4eXXY6Nely0″]“These trucks did not find their way into outer space; they have been sold to Ghanaian consumers, unfortunately. What I gathered from behind the scenes is that, most of the activities are carried out on Friday especially when they know NPA inspectors have also gone for their weekends. They would dip about 4,500 of the pre-mix into the actual premium product; it dissolves and it is sold to the unsuspecting consumers. This is ongoing and affecting the engines of vehicles across the country,” he lamented.

Citi News has sighted several letters from the National Petroleum Authority (NPA) to the National Premix Committee in eight months, revealing how the product meant for fisher-folk never reached their intended destinations.

But the NPA has not taken any drastic action in stopping such actions, and has instead been writing letters to the Premix committee and the stakeholders involved.

Over 200 diversions have so far been recorded by the NPA since January 2017 to October.

It has been estimated that the country lost over GHc7 million in subsidies as a result of these diversions.

COPEC lambasts NPA over premix diversions

Speaking on the Citi Breakfast Show on the development, Mr. Amoah lambasted the NPA for sitting aloof while the impunity continues.

He also charged the NPA to go beyond the writing of letters and deal with the perpetrators, saying the Authority has advance information on how and where the products were diverted.

“If you go through the tracking used by the NPA, at every minute of tracking, you can tell where the track loaded from, where it moved to and where the product ended.  If the NPA would be very sincere to Ghanaians, these 200 trucks are not missing, they know where they went. If the NPA would be candid with all the 200 diversions, they will be able to find where they went to just like it did with the BOST issue.”

The Executive Secretary of COPEC also called on the NPA to punish those involved in the diversions, adding that “no amount of time will be enough for investigation if they [NPA] cannot tell us where the 200 trucks have vanished to.”

Review pre-mix fuel distribution arrangement

COPEC in an earlier statement called for a review of the distribution arrangement of the product, which it said has become “a lucrative business for those in the supply chain.”

“It is our belief that the whole premix arrangement need a complete review and a complete overhauling. The current system in practice is simply prone for such corrupt diversions and re-trading as the difference in real market price and how much we subsidize for, makes for a lucrative business for those in the supply chain,” the statement added.

Below is the full statement from COPEC:

CHAMBER OF PETROLEUM CONSUMERS-GHANA

PRE-MIX DIVERSION
HALT THE TALK AND PUNISH THE CROOKS DAMAGING OUR ENGINES

The news of the diversions of over 200 trucks of pre-mix products meant for the engines of the fishermen in our fishing communities across the country is one that leaves most consumers of petroleum products in the country much more anxious about the sort of products they are being served at some pumps in the country.

Premix fuel is a subsidised product that attracts lower charges than the traditional white petroleum products of petrol and diesel, premix is a blend of pms or petrol to a portion of auto lubricants to achieve the needed viscosity for the engines of fishing boats and vessels.

The idea behind blending to achieve premix at subsidised market rates lower than pump prices of the two white products has primarily been to augment fishing activities in the country but seem no longer useful from the way the programme has been handled over the period.

A blend of 25 litres of pms or petrol and a litre of auto lubricants is often applied to achieve the needed viscosity.

This product can however be easily reblended back to pms if the right volumes of petrol is added to the subsidised premix meant for fishing.

It thus comes to us as no surprised that those who know the alternate value and use of the premix product will use every means neccesary to divert the products for higher resale value at certain fuel stations who agree to compromise.

The news of the diversions whose end point we unable to determine as of this day and time, indeed poses a danger to the engines of the unsuspecting public who buy fuel from some of the compromised outlets.

It is our belief that the whole premix arrangement need a complete review and a complete overhauling, the current system In practice is simply prone for such corrupt diversions and retrading as the difference in real market price and how much we subsidise for, makes for a lucrative business for those in the supply chain.

The issue of the whereabouts of the over 200 trucks of diverted pre-mix further leaves us wondering whether indeed there is any effective tracking system in place as has been variously suggested by authorities all this while with the very recent one being a further assurance from the sector Minister of banning of individuals from any further loading of contaminated products except for BOST using BRVs fitted with tracking devices.

One wonders why after over 3 years of introducing tracking systems in the petroleum downstream the country is still having challenges telling when and where products loaded for specific destinations eventually ended at and further enforces our long held suspicions that marked and bad products not meant for our engines still find its way to some pumps without any effective checks and tracking in place.

We call on the National Petroleum Authority to step up efforts at eliminating the excesses in this current premix arrangement that only serve as a cash cow for the handlers of the system.

We further call for an immediate audit of all the liftings done within the period in question and if possible extend beyond the current year to unearth all possible diversion conduits and punish same immediately.

Signed

Duncan Amoah
Executive Secretary
Copec Ghana

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Premix fuel being sold at filling stations – COPEC alleges appeared first on Citi 97.3 FM - Relevant Radio. Always.