We import finished products not crude – NPA on call for price reduction

Communication Director of the National Petroleum Authority (NPA), Abdul Kudus Mohammed, has explained that the pricing of fuel prices cannot be controlled when its implication on the global market remains on the rise.

According to earlier reports from Bulk Oil Distribution Companies, the price of petrol is anticipated to decrease by around $7 per litre, and the price of a kilogramme of LPG is anticipated to decrease by 7% as well within the first few days in July.

However, the indications in the Ghanaian market have been contrary as fuel and petroleum prices skyrocket.

Mr. Abdul Kudus Mohammed in an interview on the Happy Morning show with Raymond Nyamador described the reports by the Bulk Oil Distribution Companies as misleading. He reiterated that Ghana imports more refined products rather than crude which has a standardized pricing rate.

The spokesperson of the NPA earlier explained that 40% of diesel supply to Europe from Russia has been cut short due to the ongoing Ukraine-Russia war hence the increase in fuel prices.

“With diesel, the needs of Europe were being met about 40% from the supply of Russia and the war in Ukraine between Russia and Ukraine and the subsequent countries has taken off that 40% what Europe gets from Russia. This means that the commodity or quantity left for Europe and the rest of the world has reduced and basic economics will tell us that any time supply falls, prices are likely to go up because they’ll be a rush for the scarce commodity. So diesel in the last windows has gone up even though crude on the world market has reduced,” he said

He furthered, “Like I said about 90% of the BDCs consumptions that we have is finished products that have been imported outside the country. So, it’s not crude and if you look at the movement of the prices of diesel from the last window to the current window has shot up only because of the shortage of supply from Russia. So, when I saw the projection from one of the oil NGOs suggesting that prices should be coming down between 8% and 4% frankly my heart jumped because I knew that was a misleading statement actually made. It is not crude we buy into the country but the finished product.”