This follows an earlier prediction by the Institute of Energy Security (IES) that prices will go up by between 3 and 5 percent.

According to the IES, the development can be attributed to the increase in crude oil prices, the performance of the cedi, among other key pointers.

The second pricing window period spans from Tuesday, January 16, 2018, till the end of the month.

Checks by Citi Business News show that a number of OMCs including Total have increased the prices of fuel at the various pumps for example with Total a liter of petrol is selling at 4 cedis 63 pesewas.

This is up from the previous 4 cedis, 49 pesewas recorded.

Goil, SO Energy and Shell are however yet to effect the price changes.

The Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, however, insists consumers will be overburdened by this development, thus the NPA must step in.

“Something could be done to forestall the increases as we are seeing currently but nothing so far has been done. We went around the issues and the reality is dawning on us all. Some of the OMCs I know, clearly have made some significant losses. The cedi is not doing too badly but sadly Ghanaians are being asked to pay a lot more for petrol at this time” he lamented.

He further called on the NPA to ensure stability in fuel prices.

“We believe that the special petroleum tax component on the price build-up has gotten to a point where it has to go down completely or get re-positioned altogether in order to give some sense of stability or some reduction in fuel prices to Ghanaians,” he added.

Meanwhile, Mr. Amoah warned that prices will keep escalating should government not step in soon.

“These increases have been expected over the past one week and we are quite certain that if nothing is done there will be further increases even in the coming days because as we speak, world prices have hit above the 70 dollars and that clearly has its own consequences” he explained.

This is the first time prices have gone up since the reduction in the price stabilization levy for Liquefied Petroleum Gas (LPG) and diesel was announced by the National Petroleum Authority (NPA) in December last year (2017).

The price stabilization levy component for the two products has since been reduced from 10 to 3 pesewas.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

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According to them, the Board must probe the structure and the mode of fuel distribution for the buses.

The Minister for Local Government and Rural Development, Hajia Alima Mahama, gave the directive when she inaugurated the 17-member board yesterday [Monday].

“The key challenges I found with GAPTE was indebtedness and you would have to look at this.  Why this indebtedness, especially when it comes to supply of fuels?” Hajiah Alima Mahama

The new members were also tasked to to elevate GAPTE, understand the challenges the company faces and work to ensure improvement of the transport service in the capital.

“We want to inaugurate the second Board, the first Board contributed their quota to the establishment of GAPTE, and today, definitely MMDAs have changed, and new persons are coming on board, so we are here to inaugurated the second Board ”she said.

The Aayalolo bus system has been making losses since its inception in 2016.

Having been originally touted as the Bus Rapid Transit (BRT), the Quality Bus System (QBS) was rather introduced, following the inability of the government to provide dedicated lanes for the buses, which had been a major selling point of the BRT.

Speaking on the Citi Breakfast over the development, the road engineer, Ing Abdullai, was skeptical about the survival of the much hyped bus system.

To him, the system was not “well thought through” before it was implemented.

“If you look at the one that they are piloting now, the Amasaman stretch to Accra; it is absolutely impossible to operate such a bus system. The terminal that they are using now is very small located in the premises of the Amasaman police station. The rapid transit system ought to work in a location where there is a very good car park. If you look at the Amasaman road to Accra, we are restricted with two new district barriers. The road doesn’t have a room to maneuver when you are coming in the morning or evening with about 4 kilometer traffic. The system is not well thought through as at now.”

“I even think the one at Adenta en route to Accra is more flexible because of the lanes and the less restriction on it. The Adenta one has similar restrictions at some small sections. Like when you get to the Legon stretch it has three lanes and one of the lanes could be restricted for the buses.”

Apart from the lack of dedicated lanes for the buses, Ing. Abdullai noted that, Ghanaians were also not ready to embrace the bus system.

“There is no discipline, the roads are not even enough for the system,” he added.

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By: Farida Yusif/Citifmonline.com/Ghana

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According to her, the ministry does not have a tracking system to identify culprits hence the NPA, which has a system to track such happenings “must take action.”

[contextly_sidebar id=”lFgDX3fPn8i0fKmxqVcVGpagGmCfGNHB”]“They have the trackers, the NPA by law is supposed to be monitoring the supply and distribution of the pre-mix fuel, and it is the NPA that has that authority to be prosecuting offenders. So I told the NPA that the moment you find somebody perpetuating this crime, you arrest this person on the spot. The NPA has the tracker. As I sit here, I don’t have any tracker, I don’t have a tracking system to tell who is diverting pre-mix fuel or not,” the minister said on Eyewitness News on Tuesday.

She added that, “we have made requests to the NPA to allow us to also have access to the tracking system to be able to tell who is diverting and who is not” but that was yet to be granted.

The NPA in series of letters dated between January and October 2017, informed the National Pre-mix fuel Committee and the Fisheries Ministry to take action against some Oil Marketing Companies (OMCs) that are involved in the diversion of the product meant for fisher-folk in the country’s coastal communities.

The OMCs, according to the letter, took supply of the pre-mix fuel at the Tema Oil Refinery supposedly to be supplied to fishing communities outside Accra, however, they ended up supplying them within Accra often to industries.

The development, which has persisted for several months, appear to be a major factor for the collapsing fishing industry, with a decline in local fish production and increase in fish imports.

But in a rather combative interview, Madam Afoley Quaye said she was informed that the supposed diverted pre-mix fuels were duly received.

She said, “I went to the landing beaches to find out exactly what they were doing there, and the members of the landing beach committees gave me documents to prove that they have actually received the pre-mix fuel.”

This claim by the Minister, is however at variance with the NPA letters which also confirmed that in the 249 diversions recorded, some of the landing beaches made receipts available, but in actual fact, they never received the product.

Media will complain

She chastised the media for seemingly putting pressure on her to take action against the indicted OMCs, saying that they [the media] will again blame her should any action against the OMCs lead to a shortage of pre-mix fuel in the country.

“It is the media who will come out to say fishermen are not getting premix fuel. I have just received a letter that 14 out of the about 20 OMCs who are supplying the pre-mix fuel should be stopped from supplying pre-mix fuel. If I stop this today, is this not going to affect the supply of the pre-mix fuel at the landing beaches.? I will adhere to their directives and then when the shortage comes, it is you [the media] who will come again to say fishermen are not getting pre-mix fuel,” she said.

Conflict of interest issues

Meanwhile, the Minister stated that, she finds nothing wrong with the appointment of a man believed to be her brother, to serve as the acting Administrator of the National Pre-mix fuel Committee.

While arguing that his appointment was for a temporary period only to fill a vacant position, she said she does not believe her action put her in a conflict of interest position.

Premix fuel sector gold mine for party executives – Inland Fisherman

Chairman of the National Inland Canoe Fishermen Council, Jacob Tetteh Ageke, has suggested that political party executives in various constituencies are involved in the act, adding that they profit hugely from the mismanagement of the distribution.

Mr. Owusu confirmed this, reminding the NPA to be tough regardless of political influence.

“The issue lies with NPA. NPA has to be tough irrespective of whoever is there because these are political people who have taken a position in this premix issue so it is very risky as an authority trying to stamp your authority on these things. I believe the NPA can do more. “

Pre-mix fuel diversion: We can’t punish perpetrators – Committee

Meanwhile, the Chairman of the National Pre-mix Fuel committee, Nii Lantey Bannerman, has said his outfit does not have the power to sanction persons who divert subsidized premix fuel meant for fishermen to other areas to be sold to industries.

According to him, only the National Petroleum Authority (NPA) can sanction or withdraw the licenses of the Oil Marketing Companies (OMCs) who perpetrate such acts.

OMCs making abnormal profit from diversions

The government is spending several millions of cedis subsidizing the cost of premix fuel for fishermen, who are buying it at Gh7.20 pesewas per gallon.

Per Citi News’ calculations, the diversions from January to October alone have cost the country about 7 million cedis.

However, there are reports that those diverting the product are selling it to industries about two times the price, thereby creating artificial shortages in the fishing communities, and denying fishermen their due.

Below is a list of instances of pre-mix fuel diversion

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By: Jonas Nyabor/citifmonline.com/Ghana

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According to the think tank, despite assurances that the numerous taxes imposed by the previous administration which the New Patriotic Party (NPP) had described as nuisance taxes, would be scrapped, the new government only “abolished the excise duties which was just two pesewas”, and reduced the petroleum tax by a negligible percentage in the first budget.

[contextly_sidebar id=”OugAYqoEGkJ74uwtpWVdgn4L7NG64qjG”]Speaking to Citi News, a Senior Research Analyst at the Institute, Richard Rockson, said they expect wholesale and significant reductions in the taxes and levies when the budget is read in Parliament by Finance Minister, Ken Ofori Atta.

“In opposition, the government complained, along with us that some of these taxes and levies were extravagant and were on the high side and we’re expecting that once the second budget is coming into force, government will be able to look at that,” he said.

“We don’t want what happened in the first one to happen again where government abolished the excise duties which was just two pesewas, and reduced the petroleum tax from 17 percent to 15 percent. We want a comprehensive review of these taxes and levies so that we give some respite to the people of Ghana.”

Fuel prices went up a number of times this year before hitting an all-year high in September, with petrol selling at an average of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

Some NPP communicators have suggested that a number of taxes will be reviewed downwards, with the President of the Republic, Nana Addo Dankwa Akufo Addo, hinting over the weekend that electricity tariffs will be reviewed downwards soon.

The high electricity tariffs were a major part of the New Patriotic Party (NPP)’s campaign ahead of the 2016 elections, with many of the party’s communicators claiming that electricity cost more than rent.

“I’m glad that businesses are no longer burdened by the erratic power supply that wrecked our nation in recent years. Dumsor, thank God, appears now to be the thing of an unlamented past. Another of the stars of the government, the Energy Minister, Boakye Agyarko, is to be commended for the sterling work he’s been doing so far on this matter,” the President said.

“Furthermore, the government is moving to set in motion the process for the review of electricity tariffs and in the budget to be read by the brilliant Minister of Finance, Ken Ofori-Atta on Wednesday, I’m sure we will hear some good news in this regard.”

Come clean on revenue

The Institute also called on the government to publish details of revenue accrued from the taxes and levies on petroleum products and the oil find, and the expenditures made from those finances.

“We expect government to be able to come clean when it comes to the taxes and levies on the petroleum sector, especially the fuel price buildup; how much it has accrued in 2017 alone, what it has used the funds for. We expect some level of transparency in the sector. We expect government to publish revenues that we’ve had and we want to know what government has used our oil revenues for over the period.”

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By: Edwin Kwakofi & Sixtus Dong Ullo/citifmonline.com/Ghana

The post IES wants comprehensive review of petroleum levies in 2018 budget appeared first on Citi 97.3 FM - Relevant Radio. Always.

They were fined a total of ¢261,000 for serving customers with lower volumes of fuel, using non-approved GSA seals, and breaking GSA seals meant to stop cheating at the pumps.

The infographic below shows the breakdown of the ¢261,000 fine.

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By: Melvin Clottey/citifmonline.com/Ghana

The post Breakdown of fines for 57 cheating fuel stations [Infographic] appeared first on Citi 97.3 FM - Relevant Radio. Always.

All the affected OMCs are in the Greater Accra Region.

They were fined a total of GH¢261,000 for serving customers with lower volumes of fuel, using non-approved GSA seals and breaking GSA seals meant to stop cheating at the pumps.

The acting Director-General of the GSA, Prof. Alex Dodoo, told the Daily Graphic in an interview in Accra on Wednesday that the companies were sanctioned within a 12-month period.

He said the GSA undertook periodic checks on the operations of all OMCs across the country twice a year to ensure that they conformed to GSA standards.

Breakdown

Prof. Dodoo disclosed that 45 OMCs served their customers less fuel than the customers purchased and were accordingly fined GH¢5,000 each.

Ten other OMCs, he noted, used pumps not verified by the GSA, for which reason they were fined GH¢3,000 each.

According to him, two OMCs who were found to have broken nuzzles were also fined GH¢3,000 each for that infraction.

He said the OMCs were fined depending on the severity of their offences.

He said the GSA usually installed its seals on the nozzles of fuel pumps to ensure that consumers were not short-changed.

Prof. Dodoo declined to disclose the names of the sanctioned OMCs, with the explanation that majority of them were first-time offenders.

He, however, gave an assurance that the GSA would soon name and shame any OMC that repeated the named infractions.

Apart from naming and shaming, he noted, those which repeat the cited infractions would be dealt with in accordance with the law.

Nationwide exercise

Prof. Dodoo assured the public that the GSA was working round the clock in a bid to safeguard the interest of consumers.

He disclosed that the authority was currently working on its report from its nationwide inspection of fuel pumps and would soon make its findings public.

“We wish to assure the public that they have the right to know the performance of OMCs. We will put out our findings in the public domain as soon as we are done with our inspection across the country,” he noted.

Response from COPEC

Responding to the GSA’s intervention, the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Mr Duncan Amoah, told the Daily Graphic: “It is refreshing that the authority is keeping to its mandate of ensuring that Ghanaians do get value for money in all aspects of our national lives, especially within the petroleum downstream.”

“The practice of some dealers adjusting pumps to cheat or under-deliver to the unsuspecting public is one that has recently gained prominence due to the greed of some of these dealers,” he said.

He said sometimes consumers did, indeed, get raw deals at the pumps, especially from some greedy but experienced pump attendants who under-delivered.

“This practice does not only rob the unsuspecting consumer of value for money but also goes to enrich the crooks engaged in this practice,” he stated.

He said the current fine of GH¢5,000 each was obviously not deterrent enough.

“COPEC intends to forward a communique to the GSA to drastically increase these fines by at least 100 per cent to further deter others from engaging in this practice. We are also going to recommend custodial sentences for dealers found to be engaged in this act,” Mr Amoah said.

–

Source: Graphic Online

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The committee has been mandated to determine the circumstances that led to the contamination of the fuel and review the transaction, among others.

[contextly_sidebar id=”fKVN6383vc9A49Jb3hD5pLGXIAIi8Yh3″]The committee will also review the procedures undertaken by BOST to evacuate the product and ascertain the quality and remaining quantity of the product.

This was revealed in a statement, which also indicated that, BOST has so far evacuated a total of 471,000 litres of the contaminated fuel, but has currently suspended evacuation in compliance with National Petroleum Authority (NPA) instructions.

The Ministry also stated that it has received a report of the preliminary investigations conducted by the NPA.

The companies engaged in this deal, Zup Oil and Movenpinaa Energy, were found to be unlicensed thus, are not to undertake any commercial activity in the downstream petroleum industry, per section 11 of the National Petroleum Authority Act, ACT 691, 2005.

The concerns with the contaminated fuel were brought to the fore by a Citi News report, indicating that Ghana lost about GHc 7 million in revenue following attempts by BOST to sell the contaminated fuel.

The African Center for Energy Policy (ACEP), which revealed that the companies were unlicensed and that the process of the sale was fraught with irregularities, has called for the BOST MD to step aside and allow a probe into the matter.

The Minority National Democratic Congress (NDC) has also backed calls for the BOST MD to step aside.

Find below the full statement on the matter

MINISTRY OF ENERGY STATEMENT ON BOST OFF-SPEC FUEL ISSUES

Wednesday, June 28, 2017 – The Ministry’s attention has been drawn to the various media reports on the issue of the release of 5 million litres of off-spec fuel from the Accra Plains Depot of the Bulk Oil Storage and Transportation Company (BOST). We have also received a report of the preliminary investigations conducted by the National Petroleum Authority on the issues. We note that BOST has so far evacuated a total of 471,000 litres of the said product and has currently suspended evacuation in compliance with NPA instructions.

We wish to assure the general public, that the Ministry is determined to ensure that the integrity of the quality of petroleum products supplied in the country is protected. In view of this the ministry is in the process of setting up an 8 member investigative committee into the matter. The Terms of Reference of the Ministerial committee include but will not be limited to the following

1. Determine the circumstances that created the off-spec product
2. Review the procedures undertaken by BOST to evacuate the product
3. Ascertain the quality and remaining quantity of the product
4. Determine if the product can be corrected, if not determine the alternative use for the product
5. Review the transaction

The committee will be made up of representatives of:

• National Petroleum Authority (NPA)
• Tema oil Refinery (TOR)
• Ghana Standards Authority (GSA)
• Bureau of National Investigations
• Chamber of Bulk oil Distributors
• Association of Oil Marketing Companies
• Energy Commission
• A representative from the relevant Civil Society Organizations

The committee is expected to advise the Ministry on the necessary technical, administrative and legal actions to be taken.

SIGNED
BOAKYE AGYARKO
MINISTER

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

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This corroborates the claim by the Africa Centre for Energy Policy (ACEP), which raised the alarm about the irregularities in the transaction.

[contextly_sidebar id=”B8pc6HPFFYWtCGCfcfQ92OxPUh5LRBcC”]According to the NPA, it will take legal action against the firms, whiles “it conducts further investigation to determine the actual quantity and quality of the products received at the facility of Zup Oil.”

The Authority confirmed this in a statement signed on Tuesday, by its acting CEO, Alhassa Tampuli, and copied to citifmonline.com, after its initial investigations into the incident.

“We wish to assure the general public that the NPA is keenly monitoring the situation and shall keep the general public updated on the development. Meanwhile, the NPA has intensified its monitoring activities of the petroleum products retail outlets nationwide to ensure the quality of the fuel sold to consumers is not compromised.”

“Additionally, the NPA has noted that, Movenpinaa Energy and Zup Oil are not licensed to undertake any commercial activity in the downstream petroleum industry. Their activities therefore infringes on section 11 of the National Petroleum Authority Act, ACT 691, 2005. Accordingly, the NPA will take appropriate legal action against the said companies” the NPA’s statement said.

Portions of the Authority’s initial findings also read: “Officials from the NPA visited the location (Zup Oil) at Gulf-City, Tema on 27th June, 2017. Documentation presented to the officials suggested that all the ten BVRs were offloaded at the facility. However, this is subject to confirmation. In this regard, the NPA is conducting further investigation to determine the actual quantity and quality of the products received at the facility of Zup Oil. Meanwhile samples of the product from the tanks have been taken for analysis and the tanks sealed to prevent tampering.”

Interdict BOST Director over sale of contaminated fuel – Minority

The transaction, which saw Movenpiina and Zup OIL purchase the fuel, is supposedly fraught with irregularities and possible corruption to the tune of 14.25 million cedis, as alleged by the African Centre for Energy Policy (ACEP), and the National Democratic Congress (NDC) Minority group in Parliament.

The two groups have since called on the Managing Director of BOST, Alfred Obeng Boateng step aside and allow for investigations into the matter.

The Minority said BOST’s argument that the “blending of the said fuel couldn’t be done at TOR because the CDU is down is most untenable”.

The Minority also demanded the immediate withdrawal of the contaminated product from the market to protect consumers and assurances that this will not recur.

“That the financial loss estimated at GHS 14.25 million be retrieved by surcharging the offending officials at BOST in line with the recent Supreme Court decision” the minority suggested.

Background

The country is said to have lost about GHc 7 million 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 News indicate that BOST agreed to sell about GHc 5 million litres of the contaminated fuel to Movenpiina Energy.

The documents indicated that as at Wednesday, June 21st, 2017, BOST had agreed to sell off an estimated 186,000 litres of contaminated fuel to the oil company.

ACEP’s claims

ACEP said Movenpiina initiated the transaction with BOST on 19th May, 2017, some ten days before it became a legally recognized company in Ghana.

Also, Movenpiina had not obtained the requisite license from the NPA to trade in the industry, according to the centre.

ZUPOIL LTD, the company which was named “the off-taker” was said to have a storage facility that could accommodate the volume of product, but was not known in Ghana’s petroleum industry.

Thus ACEP said it was illegal for BOST to have engaged Movenpiina and ZUPOIL LTD in the sale and storage of the off-spec petroleum product.

We didn’t err in dealings with Movenpiina, ZUPOIL – BOST

BOST, however, defended its decision to sell off the contaminated or off-spec products to Movenpiina saying the move was the most prudent considering the potential loss in revenue.

In response to this, ACEP said the management of BOST exhibited unwarranted discretion in the award of the contract to Movenpiina.

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By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana

The post Companies in ‘suspicious’ contaminated fuel sale unlicensed – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.

The product, apart from being traded illegally was also of a poor quality after field test.

The NPA, in collaboration with the security agencies, targeted illegal table-top vendors of petrol and diesel in the region.

They stormed illegal outlets at old Daboase on the main Takoradi-Accra Road and Apimanim in the Ahanta West District on the Tarkwa-Takoradi Road.

In the process, over 10,000 litres of diesel were confiscated.

Some of the vendors were selling diesel in gallons along the streets whilst others were at established locations.

At Daboase Junction where over 7,000 litres of diesel were impounded, the most of the dealers were seen selling the products in small shops in front of their houses.

At Apimanim, over 3,000 litres of the petroleum product were confiscated by the officials of NPA from a dealer who was operating in his house at a cottage called ‘Sobibor’.

The owner of the illegal business was absent when the officials from NPA visited.

However, a search conducted in the house revealed various gallons and drums that were used to store the product.

Samples of the product, which were tested by the NPA with the LSX machine, revealed that the fuel being sold was of poor quality and had the tendency to destroy the engines of vehicles that patronized the fuel.

Speaking to journalists, officials of NPA indicated that the operation would promote the retail of quality petroleum products.

Traders sold products at unapproved prices and adulterated fuel to make higher profit margins, they disclosed.

They explained that the NPA Law prohibits unlicensed persons from being in possession of petroleum product in quantities unreasonably in excess of that person’s immediate requirement.

“The fear is that the illegal sale of petroleum products could lead to explosions, as the dealers of the highly inflammable fuel operate with no safety measures,” he indicated.

“We are doing this to ensure that we sanitize the downstream industry. We want to ensure that standards are applied across board in all aspects of the industry. The clamp down will be extended to other parts of the country,” they declared.

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By: Obrempong Yaw Ampofo/citifmonline.com/Ghana

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