Chief executive of NPA Moses Asaga told Citi Business News ‘the 500ppm was to ensure that technically, TOR can be able to produce the 500 ppm but when it comes to importation, the BDCs will import 10 ppm. TOR’s 500 ppm can then be blended to come to the required standard because if we close the refinery, it means there will be loss of jobs and chaos’.

The NPA, yesterday (October 3), announced it had revised the national sulphur specification for diesel from the maximum 3000 parts per million to 500 parts per million, effective January 2017.

The Authority will however allow suppliers to import diesel at 10 ppm or lower.

But the review has been met with heavy criticism especially from the African Centre for Energy Policy (ACEP) which says NPA must further review downwards the maximum sulphur content requirement for diesel products imported into the country.

ACEP, earlier told Citi Business News that thousands of Ghanaians lose their lives every year, because they inhale fumes from dirty diesel which contain high levels of sulphur.

ACEP in partnership with Swiss NGO, Public Eye, recently revealed that Swiss commodity trading firms are exploiting lax regulatory standards to sell dirty diesel to African consumers.

The report which surveyed eight African countries including Ghana, indicated that the sulphur content of diesel samples in such countries was more than 300 times compared to that of Europe, US and Kenya in Africa which has 50 parts per million (ppm).

Chief executive of NPA Moses Asaga, who confirmed to Citi Business News that TOR lacks the capacity to meet the specification, said the Authority was forced to still maintain high sulphur levels in its revision figures to avert a complete shutdown of TOR.

“The countries in Africa that have attempted 50ppm have closed down their refineries because they cannot produce at that level. As a result, Ghana had to take the middle position by making sure it gets the right quality and at the same time keeping TOR in operation.”

Mr. Asaga added, “There is a timeline for all refineries to for them to upgrade their equipment and the only equipment that the TOR requires is a de-sulphurizer to reduce the sulphur levels to 10 ppm.”

Citi Business News has gathered it may take Ghana at least three years to fully ban the importation of dirty diesel into the country.

This is because TOR which is Ghana’s only national oil refinery lacks the financial clout to switch its current equipment to lower the sulpur content in diesel.

The equipment known as a de- sulphurizer will cost about 120 million dollars.

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By:  Vivian Kai Lokko/citibusinessnews.com/Ghana

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“The announcement that the standards have been reduced to 500 ppm is not satisfactory the reason being that importers can still import diesel with Ultra sulphur content of up to 10ppm then why don’t we put the standard at 10 ppm?” Executive Director of ACEP, Dr. Amin Adam asserted.

The NPA, yesterday (October 3), announced it has revised the national sulphur specification for diesel from the maximum 3000 parts per million to 500 parts per million, effective January next year.

The Authority will however allow suppliers to import diesel at 10 ppm or lower.

Though Dr. Amin Adam commended the NPA for the review, he maintains that the decision to peg the maximum sulphur content at 500 ppm demonstrates the regulators’ lack of commitment to protect the lives of citizens from harm.

“This decision by the NPA means that 500 ppm is still not the level of quality that we need. This decision is contradictory; it doesn’t make sense to us. It only shows that even though the regulator knows the quality of fuel that we need in Ghana, they are deliberately allowing importers to bring up to 500ppm which is still not good,” he observed.

A joint publication by ACEP and its partner, Public Eye, indicates that the lives of citizens across eight African countries including Ghana, are at risk over the use of low quality diesel.

According to the report, the study revealed that the sulphur content for diesel in the eight countries surveyed was more than 300 times that of Europe, US and Kenya in Africa which has 50 parts per million (ppm).

Meanwhile ACEP is of the view that the new announcement of a downward revision of the national sulphur content is likely to attract other importers from the sub-region to trade via Ghana.

“Of course Nigerian businessmen who are very smart will rely on Ghanaian bound vessels since they know that they import high quality diesel,” he stated.

Moreover Dr. Adam is challenging proponents of a possible increase in the cost of fuel following a re-configuration of the country’s refinery systems.

“I do not agree with the argument that Ghana will not be able to enjoy economies of scale as it imports high quality diesel into West Africa will require specific vessels …I am challenging CBOD to tell us why the cost has to increase and it is of no surprise that the CBOD mentioned of a one percent interest which is tantamount to no increase in effect,” he further stressed.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post ACEP demands further review of sulphur content for diesel appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Authority however says it will allow suppliers of fuel to Ghana to import diesel at 10ppm or lower.

According to the NPA, whilst the revised national specification will be at 500pmm, suppliers of fuel could import ultra-low-sulphur-diesels (ULSD) to Ghana as pertains in Europe.

It follows recent concerns over the harmful effects of substandard diesel which contained excessive sulphur contents than is permitted in Europe and other countries across the globe.

CEO of the NPA, Moses Asaga earlier explained to Citi Business News that Ghana’s standard of 3000 ppm falls within the regional margin quoted by countries like Nigeria and Ivory Coast.

In addition he intimated that a significant reduction in the sulphur content will cost Ghana about 300 million dollars.

“Our refinery in Ghana has been producing 1000 parts per million; as such if we want to decrease to 50 parts per million, that will imply the whole refinery will have to be re-configurated which may need a capital cost of between 200 to 300 million dollars,” he observed.

But a statement from the NPA on the new directive indicated, “The revised national specification of sulphur in diesels, was reached on Monday 3^rd October, 2016 with industry stakeholders after deliberations,”

It added, “This deliberation has been part of an extensive and collaborative effort with stakeholders since 2013 on how to reduce the sulphur levels in diesels consumed by motorists in Ghana and member states in the West African sub region.”

Energy policy think tank, African Centre for Energy Policy (ACEP), earlier told Citi Business News that thousands of Ghanaians lose their lives every year, because they inhale fumes from dirty diesel which contain high levels of sulphur.

ACEP in partnership with Swiss NGO, Public Eye, recently revealed that Swiss commodity trading firms are exploiting lax regulatory standards to sell dirty diesel to African consumers.

The report which surveyed eight African countries including Ghana, indicated that the sulphur content of diesel samples in such countries was more than 300 times compared to that of Europe, US and Kenya in Africa which has 50 parts per million (ppm).

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post NPA reviews maximum sulphur content for imported diesel appeared first on Citi 97.3 FM - Relevant Radio. Always.

A recent study conducted by Swiss NGO Eagle Eye , in collaboration with ACEP revealed that  imported diesel from Europe to African countries including Ghana had  sulphur level higher than 1,500 ppm, which is 150 times the European limit of 10 ppm, hence harmful.

Speaking to Citi Business News in an interview, the Executive Secretary of the Chamber of Petroleum Consumers- Ghana, Duncan Amoah stated that the law that regulates the importation of fuel must be amended to save Ghanaians from air pollution.

“We are petitioning the president because we think something ought to be done about it. We believe that the president is also interested in public safety. Issues of the environment, issues that concerns industry,” he noted.

He stated that it is pertinent for the country to begin amending its laws to correspond with international standards in order to save human lives.

Pointing to the need for a new policies, Mr. Amoah was optimistic importers will have no other choice but abide by regulations that will be announced by government to protect the environment.

“We are sending the petition to the president to insist that policies and the framework be changed so that the importers will no longer have the freewill to bring in those low grade high sulphur as we have on the market now,” he stressed.

He hinted that the group will further petition parliament to help drive the need for a new policy in importing clean diesel fuel.

“We will also end a petition to the parliament of Ghana to make our issue known so that it will be addressed with time. Dumping of high content sulphur in Ghana affects all of us,” he said.

Touching on the next line of action, Mr. Amoah stated that the group may petition the EU on moral grounds to help halt the practice.

Findings of  Eagle Eye

According to the report, more than two-thirds of the diesel samples (17 out of 25) had a sulphur level higher than 1,500 parts per million (ppm), which is 150 times the European limit of 10 ppm.

Ghana’s sulphur content standard is pegged at 3,000 ppm, but the research found Ghana’s diesels products imported by Trafigura and Vitol to contain between 2,410 and 2,730 ppm, which is lower than the acceptable Ghana Standards Authority (GSA) limits but much higher than the 10 ppm European standard.

According to the report titled: “Dirty Diesel,” differences between national fuel quality regulations offered the opportunity for companies to profit from a form of regulatory arbitrage.

While the practice of blending fuel for profit is an acceptable industry practice, it is within the law of the countries where the products are exported to, that  it is the result  of “regulatory arbitrage” that allows traders and fuel companies to dump cheap, dirty fuels at the expense of the health of the consuming public in Africa.

United Nations trade statistics show that the Amsterdam–Rotterdam–Antwerp oil route accounted for around 50 per cent of the declared volume of petroleum products delivered to West Africa in 2014.

The National Petroleum Authority data indicate that Ghana as of June this year, imported 1,881,350,944 metric tonnes of diesel worth more than US$1.1 billion.

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By: Lawrence Segbefia/citibusinessnews.com/Ghana

The post COPEC to petition Mahama over dumping of dirty diesel in Ghana   appeared first on Citi 97.3 FM - Relevant Radio. Always.

ACEP in a statement signed by its Deputy Executive, Benjamin Boakye, made this known in a report it launched on Thursday, September 15, titled “Dirty Diesel”, published by its partner Public Eye.

The report reveals how Swiss commodity trading firms exploit lax regulatory standards to sell to African consumers, fuel with high sulfur content.

Produced by the trading firms themselves, these types of fuel have long been banned in Europe, and they contribute significantly to the rapidly rising air pollution in African cities and jeopardize the health of millions of people.

In a petition addressed to Trafigura, Public Eye and its West African partners called on the Geneva-based commodities giant only to sell fuel that meets European standards in all of its operations around the world.

Based on three years of research, the “Dirty Diesel” study highlights for the first time the pivotal role played by Swiss commodity trading companies in Africa’s fuel industry; and reveals the scandalous business model behind a supply chain completely controlled by these companies in their multiple roles as producers, suppliers, and — in some regions —operators of gas station networks.

In West Africa especially, Vitol, Trafigura and Addax & Oryx, ruthlessly exploit weak regulatory standards, and make the local urban populations pay with their health.

Public Eye researchers drew fuel at local pumps in eight countries. The result was shocking: as the analysis revealed, the diesel samples contained up to 378 times more sulfur than is permitted in Europe.

Furthermore, other toxic substances, such as benzene and polycyclic aromatic hydrocarbons, were also found in concentrations that are also banned in Europe.

The 160-page report, also shows that the trading companies do not only ship dirty diesel and dirty gasoline — and in some areas even sell it at their own pumps — but also produce both fuels themselves.

On land or at sea, they mix up a petrochemical cocktail from refinery products and other components known in the industry as “African Quality”.

These toxic fuels are mainly mixed in the ARA-Zone (Amsterdam-Rotterdam-Antwerp) where Swiss trading firms have their own refineries and storage facilities. Many West African countries that export high grade crude oil to Europe receive toxic low quality fuel in return.

Producing and selling such products is illegitimate, violates the African populations’ right to health.

According to a recent UN study, the populations in the continent’s major urban centers suffer from the most rapidly increasing levels of air pollution in the world.

The prestigious organization, ICCT**, estimates that by 2030, Africa will have three times as many deaths from traffic-related particle dust than Europe, Japan, and the US combined.

Respiratory illnesses are already a major health issue and diesel fumes can cause cancer.

To disarm this timed bomb, the governments of the affected countries need to set and enforce stricter standards.

But the Swiss commodity companies too, must respect human rights wherever they do business — and comply with the UN-Guiding Principles on Business and Human Rights adopted in 2011.

CEO Jeremy Weir wrote in last year’s sustainability report that Trafigura (the leading Swiss oil trader in Africa), wants to “become acknowledged sector leaders in the way we manage corporate responsibility”.

The company also intends to adapt its business practices to the aforementioned UN guidelines. In order to remind the commodities giant of its good intentions, Public Eye and its West African partner organizations will be shipping a container full of toxic air from Accra, the capital of Ghana, back to Geneva in late September.

With this symbolic “Return to Sender”-campaign, the NGOs are inviting Trafigura to put its money where its mouth is, and stop selling fuel that does not meet European standards anywhere in the world.

“We also call on African governments to immediately take steps to tighten regulations to stop commodity traders from trading the health of hard working citizens for profit. The example of Kenya to limit Sulphur content to 50ppm is worth emulating by the rest of the continent. It is therefore a collective duty on all- government, regulators, Civil Society, the Media and the relevant stakeholders to be part of the advocacy to reduce pollution and its attendant health risks,” the statement concluded.

About Public Eye

For around 50 years, the Swiss NGO Public Eye (formerly Berne Declaration), has offered a critical analysis of the impact that Switzerland, and its companies, has on poorer countries.

Through its research and campaigning, and with the support of its more than 25,000 members, Public Eye fights against injustices with a significant link to Switzerland and demands the respect of human rights throughout the world.

In May 2014, the International Council on Clean Transportation (ICCT) discovered that a US Jetta and a US Passat released four times as much nitrogen oxide on the street as they did in the laboratory.

The non-profit organization informed the US Environmental Protection Agency and the Californian Air Resources Board about this manipulation – and thereby caught the world’s attention with what became known as the VW scandal.
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By: citifmonline.com/Ghana

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