Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Moses Asaga says, the country should prepare to pay extra premium if it has to import safe fuel.
According to him, it would be difficult to import safe fuel into the country since that will come with extra cost by way of taxes and levies.
He indicated that, the price of fuel depends on its quality.
That, he said, if Ghana were prepared to consume quality fuel then, it should equally be ready to pay for quality.
He said this, in a response to a question posed to him during an interview on Citi FM on the quality of fuel Ghanaians consume.
He explained that, the quality of fuel imported into the country currently stood at 99.7% while that of Europe was 99.95%.
”Our quality of fuel is 99.7% if you add the sulphur to all the other factors. Our quality is 99.7% and Europe is 99.95%, clearly our products aren’t substandard”, he stressed.
He noted that, Ghana would have to pay higher premium which would result in increment in taxes and levies on petroleum products, if” we start requesting for quality grades of fuel”.
“In West Africa, the market is well structured. We have Nigeria, Ghana and Cote D’lvoire. When they are loading a ship, they will load about 300,000 metric tonnes on a ship. About 90% of the 300,000 metric tonnes is going to Nigeria and then the rest comes to Ghana. Anytime we have an emergency it is Nigeria that re-exports to Ghana so in terms of economics of chaos, anytime we want to move, it means we must move with Nigeria. If we don’t move with Nigeria and we want to be an isolated case then we have to pay a premium for those higher grades,” Mr Asaga argued.
He further stressed that Ghanaians were paying more than their counterparts in Kenya, the United States, and Canada and Europe because those countries take their product directly from the Middle East where according to him, the product was relatively cheaper.
But for Ghana, he said, it takes her product from external sources including Rotterdam and the Amsterdam.
Source: Ghana/todaygh.com/Prosper K.S Agbito, Intern, AUCC