The OMCs Managers served the notice of their intention to close down their outlets, following a spate of armed robbery attacks that resulted in the killing of four pump attendants, a watchman and a driver at six fuel stations within the space of two weeks.

[contextly_sidebar id=”LxiyKrW6oX9pH5BVV8K6tF1xrr2UUZcl”]However, they reversed their decision after assurances from the Regional Security Council yesterday (Tuesday) of adequate protection.

The Regional Minister who doubles as the REGSEC Chairman, Salifu Saeed, condemned the deadly incidents and promised that joint police and military patrol teams will intensify their night operations to clamp down on the activities of armed robbers in the region.

He said security checkpoints would be mounted at vantage points in the Tamale Metropolis to thoroughly search vehicles and motorcycles which used those roads late at night.

He tasked the managers of the OMCs and the general public to volunteer relevant information to the law enforcement agencies to arrest and prosecute miscreants.

Area Manager of Naagamni Oil Marketing Company Limited, Abdul Razak Hudu, on behalf of his colleagues, thanked the REGSEC for the assurances.

He told Citi News they were satisfied with the promises made by the Council and pledged their commitment to liaise with the law enforcement agencies to flush out the armed robbers.

The six fuel stations that were robbed included the Kakpagyili Shell fuel station, two Naagamni fuel stations at Kanshegu and Kasalgu and Superior oil fuel station at Datoyili.

The most recent attack occurred at the Kakpagyili Shell filling station on Saturday January 27, 2018 where the watchman was killed.

Some of the pump attendants who were beaten during the attacks are receiving treatment at various health facilities.

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By: Abdul Karim Naatogmah/citifmonline.com/Ghana

The post OMCs back down on shutdown threats after N/R REGSEC assurances appeared first on Citi 97.3 FM - Relevant Radio. Always.

Checks by Citi Business News at some major oil marketing companies have shown that the prices of fuel were kept unchanged for the period spanning January 1, 2018 to January 15, 2018.

A litre each of petrol and diesel is being sold at 4 cedis 49 pesewas at Goil.

Also, Shell kept its prices for a litre each of petrol and diesel unchanged at 4 cedis 49 pesewas.

Total Petroleum increased its prices by some four percent on Thursday, January 4, 2018.

A litre each of petrol and diesel therefore sold at 4 cedis 67 pesewas.

But as at the evening of Friday, January 5, 2017, the company has reviewed its price downwards.

The prices have since been reduced to 4 cedis 49 pesewas to per litre each of petrol and diesel.

It is unclear what may have led to the reversed decision but the OMCs that had increased their prices had attributed the increases to the rise in global crude oil prices.

But, SO Energy has increased its prices by about one percent for a litre of petrol and diesel to sell at 4 cedis 47 pesewas.

The development with OMCs maintaining their prices marks the fourth time that fuel prices have been kept unchanged despite the reduction by the National Petroleum Authority (NPA) in the price stabilization levy component on diesel and Liquefied Petroleum Gas (LPG).

The NPA reduced the price stabilization levy by 70% each on diesel and LPG.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post OMCs maintain prices for first pricing window in January appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the Association, the National Petroleum Authority (NPA), can rely on the same tracking system that detected the diversions, to fish out the perpetrators for the necessary sanctions.

The Premix Distributors Association  gave the advice in a statement signed by its secretary, Ransford Kissi Appiah and copied citifmonline.com.

[contextly_sidebar id=”XTXKmiolPJ2veJUxbg1TfKkHfOVyCxju”]“…We humbly appeal to the NPA to use the tracking technology at their disposal to effect the arrest of perpetrators in the act to serve as deterrent.”

The Association also appealed to the NPA to give its members access to the tracking system to help forestall such illegal diversions within the sector.

“To help prevent further deterioration of the situation, we urgently appeal to the NPA to consider granting OMCs access to the tracking system. This is to help arrest any driver/LBC [Landing Beach Committee] collusion in the discharge of our duties to our dear nation,” the statement added.

Background

Reports from the NPA suggest that, over 200 cases of diversions have been recorded since January 2017 till date.

Citi News sighted several letters the NPA wrote to the National Premix Committee and the stakeholders  in the sector, complaining about the matter, but has not been able to make any arrests.

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.

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

The post OMCs urge NPA to arrest premix fuel ‘thieves’ with tracking device appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the consents of the aforementioned stakeholders are needed before the diversions are made and have nothing to do with the National Pre-mix Committee.

Citi News has cited several letters from the National Petroleum Authority (NPA) to the National Pre-mix Committee, revealing how the product meant for landing beaches never reach their intended destinations.

[contextly_sidebar id=”OwH3PM4ALsd7aN7JOYHqyGWTA5wYbZSc”]Over 200 of such cases have so far been recorded by the NPA since January 2017.

In a bid to curb the menace, which is said to have cost the country over GHc7 million because of the subsidy on the product, the National Pre-mix Committee however proposed for a cut down on the number of landing beaches.

But Mr Armah Quaye while speaking on the Citi Breakfast Show on Monday over the issue insisted that the diversions can end if the NPA holds all others in the supply chain responsible and punishes them accordingly.

“A landing beach alone cannot take the product and go and sell. When they want to divert pre-mix, the fact is that it should have the consent of the OMC, the landing beach and then the truck driver. So if pre-mix has been diverted, these are three people who should be held responsible and not the OMC alone.”

“…the pre-mix secretariat does not have the machine to be seeing the truck, only that they will be waiting for the truck to land at the landing beach and then the fishermen or the committee will testify that it has arrived. So it will be very difficult to hold the secretariat responsible.”

He further called for a dialogue among the stakeholders in the sector in a bid to have the issue addressed holistically.

“It is at least a chain. If you want to look at it in totality, we need to call for a stakeholders meeting between the Ministry of Energy, NPA, transporters, the landing beach and the oil marketing company so they can iron out such issue,” he added.

Give fishermen coupon

Dr. Charles Wereko-Brobby, who once served as policy adviser when the sale of pre-mix fuel for fisher-folk was instituted, has said the whole policy as currently exists must be scrapped.

Whilst the policy introduced in 1990 was intended to help fisher-folk, Mr. Wereko-Brobby said “the intent was badly executed.”

Dr. Wereko-Brobby proposed that fisher-folk be given coupons to buy the additives themselves instead of government subsiding the product.

“Fishermen should have been given coupons to buy the additives and mix it rather than creating a situation where you are supposedly making the pre-mix [for them]… so you don’t create a market for alternative uses.”

Coupons won’t solve issue

But Mr Armah Quaye said introducing the coupon is not the best solution to halt the pre-mix fuel diversions.

“We have about 14,000 canoes in the whole country only, 9,000 are currently operating…if you say we should go and buy coupon, what it means is that the fish on the open market is going to  be very expensive and that is why government is subsidizing the pre-mix for the fishermen. We started it about 25 years ago but it failed,” he added.

Premix fuel sector gold mine for party executives – Inland Fisherman

Chairman of the National Inland Canoe Fishermen Council, Jacob Tetteh Ageke, had 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

Fishing industry collapsing

This is happening at a time when fishing communities in need of the fuel hardly get access to it due to its shortage and high cost in their respective areas.

The lack of the product in these communities affects the activities of fisherfolks, eventually leading to fewer catches, allowing excess importation of fish and fish products from other countries.

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

The post ‘OMCs, landing beach c’ttees, truck drivers complicit in pre-mix diversions’ appeared first on Citi 97.3 FM - Relevant Radio. Always.

Already, the CEO of the Association of Oil Marketing Companies, Kwaku Agyeman-Duah, has warned of some 4000 job losses in the next few months due to the development.

[contextly_sidebar id=”d0Q6WoS9yRT2q0kGramQX89BEGtaYWJT”]The Association contends that, profits for its members continue to drop as they also face difficulty in repaying debts to banks and meeting the necessary tax obligations.

The Managing Director of Hossana Oil, Konlan Nanleeb, who has been affected by the damning impact of the illegal sale of petroleum products, explained to Citi Business News plans to lay off more workers as his operations have become unprofitable.

“We do not want to do these things, but at the end of the month, your margins cannot pay the workers so you have no option than to tell some of them to sit down and we are about to lay off more because we do not sell due to the illegal products,” he asserted.

Mr. Konlan Nanleeb,  who owns at least seven fuel stations in Northern Ghana, also lamented how the low sales is making it difficult for him to stay relevant in the business.

“Most of the stations don’t sell; a day, a while fuel station could close with sales between 300 and 1000 cedis. But you would be required to pay the SSNIT, salaries and utility bills at the end of the month,” he observed.

At a media briefing on the issue on Tuesday, Mr. Agyeman-Duah warned that, the group will resort to other legal means should they not get a favourable response from government after the two-day ultimatum for them to get the issue resolved.

Already, the NPA has shown interest in curbing the illicit business.

But Konlan Nanleeb believes curtailing the situation should translate in economic growth as the petroleum sector will be more competitive.

“We are appealing to government to have a second look into this…we should grow the petroleum sector than allowing this illegal practice to go on.”

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post More OMCs threaten layoffs over illegal trade appeared first on Citi 97.3 FM - Relevant Radio. Always.