The remaining 75% was imported by 18 different Bulk Oil Distribution Companies (BDCs).

According to the Finder News paper, this means, on the average, each BDC imported a little over 4% of diesel in the first half of 2016, making BOST a major player in the market.

The role of BOST

BOST alone imported 221,292.30 metric tonnes of diesel representing 25% while the imports of 18 BDCs put together accounts for 660,108.92 metric tonnes, representing 75%.

In all, 881,401.22 metric tonnes of diesel were imported into the country in the first six months of this year.

The NPA data provides evidence that a state institution like BOST is playing a key role in the importation of the said ‘dirty diesel’ and, therefore, the situation cannot be blamed on only private sector players.

‘African quality’ diesel report

According to  the report, Swiss commodity traders, Trafigura and Vitol, are among a number of companies accused of exporting what environmentalists call ‘African quality’ diesel, blending products in European facilities to create fuels with sulphur levels that are, sometimes, hundreds of times over European limits.

The report said 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.

2,410ppm and 2,730 ppm in Ghana

Ghana Standards Authority approved sulphur content of 3,000 ppm, but the research found Ghana’s diesel 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 10ppm European standard.

TOR doing 1,000ppm (Diesel) and 500 ppm (Petrol)

The Finder also reported that the Tema Oil Refinery (TOR), which refines sweet light crude, and collaborated with Ghana Standards Authority to set the 3,000ppm standard for Ghana, is doing 1,000ppm for diesel and 500ppm for petrol.

EU/USA 50ppm and 10ppm

In the European Union, the ‘Euro IV’ standard has applied since 2005, which specifies a maximum of 50ppm of sulfur in diesel fuel for most vehicles. Ultra-low-sulfur diesel with a maximum of 10 ppm of sulfur has been widely available as of 2008.

According to the report, the fuel imported into Ghana, mainly diesel, is seriously toxic sometimes to the extent that it is 2000 times worse than the standards accepted in the European Union (EU) and the United States of America (USA).

Dirty diesel in Ghana more expensive than clean diesel in USA 

Following the uproar over the dirty diesel saga, suggestions are being made that Ghanaians would have to pay more if they want to enjoy the quality fuel used in the EU and the USA.

But the fact is that Ghanaians are already paying more for the dirty diesel than what those in the USA pay for clean diesel and, therefore, the argument that Ghanaians have to pay more than current prices to enjoy the clean diesel cannot be justified.

Light sweet crude at $43.63

As at yesterday [Tuesday], a barrel of light sweet crude on the New York Mercantile Exchange was selling at $43.63, yet consumers in Ghana now pay about GH¢16 per a gallon of diesel – which, clearly, is unreasonable.

On the other hand, in the United States of America (USA), a gallon of clean diesel is sold at $2.67, far lower than the over $4 Ghanaians are paying for the same commodity.

The price of a gallon of petrol in Pittsburg-Pennsylvania, one of the cities in US that pay higher for fuel was $2.39 as at yesterday while the price in Ghana is GH¢16 or equivalent of more than $4.

Clearly, Ghanaians are paying more for the dirty diesel because of the over 40% of taxes imposed on the product

The fuel price increase has imposed more hardship on the already suffering Ghanaian.

Senyo Hosi’s take

1. The Ghana Standard for sulphur content stands at 3000 parts per million (PPM).

This has been so since 2014 and considered acceptable by the Environmental Protection Agency (EPA) and the Ghana Standards Authority.

2. Standards stood at 10,000ppm and later 5,000ppm in 2007 when BDCs joined the supply chain.

3. BDC supplies have stood at about 2,000 – 2,200ppm and in some cases below 1,000ppm.

4. Per point 1 and 3, BDCs do not supply or import substandard products. In fact, BDCs supply products superior to the Ghana standards.

5. The European standard is superior to the Ghana standard with a 50ppm.

6. Standards are set by policy makers in ‘consultation’ with industry within the West African Region and including the Africa Refiners Association.

The standards are set acknowledging technological improvements and implications of regional logistics costs and local refinery capacity to meet specs and the consequential impact on refinery employment.

7. The NPA has since 2014 been championing efforts to move Ghana Standards to 500ppm.

B. Does the Ghanaian deserve better?

1. Absolutely, yes. Can European 50ppm spec be supplied to Ghana? Absolutely yes.

2. It is, however, expected to increase the logistical cost as the cost advantage in sharing logistics across West Africa will be lost.

This may be initially steep but temporal. The incremental cost may not exceed 10%. The cost will likely taper down as more countries follow suit.

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Source: Finder newspaper

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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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