FUEL EXPORT MALPRACTICES ON THE RISE IN GHANA – ENERGY MINISTER

ACCRA, The Minister of Energy, Boakye Agyarko has observed that there is an increasing spate of fuel export malpractices involving exporters to neighboring African countries.

According to him, the main landlocked countries who are supposed to be recipients of Ghana’s petroleum products exports like Burkina Faso and Mali never get to receive the product because exporters connive with locals and dump the product on the local market.

Speaking at a breakfast meeting with stakeholders including; National Petroleum Authority, Chamber of Bulk Oil Distributors and the Association of Oil Marketing Companies, he observed that the conduct of these unscrupulous persons has contributed significantly to decline in sales volumes of Oil Marketing Companies in legitimate business.

It is not news to you that export malpractices have been on the rise, which ultimately leads to the dumping of products intended for export on the local market. These few bad nuts in the export business have created a bad name for all export companies and by extension have contributed significantly to decline in sales volumes of Oil Marketing Companies in legitimate business, he revealed.

He indicated that in view of the fact that local, levies and margins are not applicable to export products and Based on the Price Build Up effective 16th May 2017, taxes, levies and margins constitute 51% of pump price of petrol and Diesel, meaning that a company involved in illegal exports can gain as much as 51% of the pump price from illegal export practices

This gain varies with the PBU where we have observed even higher percentages. There is no doubt that these amounts serve as big incentives for unlawful companies to lift products from depots under the pretext of exporting them and dump them into retail outlets within the country, he added.

Boakye Agyarko is however worried that this practices has also created a huge compromise of the Petroleum Products Marking Scheme since export products are not marked.

On several occasions NPA has sampled products from filling stations and found the product either unmarked or the required marker diluted. In the case of dumping of Naphtha, there is a compromise of the quality of the petrol sold since the Research Octane Number (RON) will be brought lower than the national standard of 91.

This practice has created an artificial increase in export volumes. Export volumes for Diesel especially grew by an astronomical 1829% from just above 10 million litres to over 196 million litres, while petrol grew by 102%. Ladies and gentlemen, these volumes do not match the volumes recorded by the Malian and Burkinabe regulators as official imports from Ghana, confirming that most of these products do not reach the declared destinations

As part of measures in addressing the situation, NPA with support from the Ministry has ssued export guidelines to check recalcitrant PSPs and incorporate them into draft NPA regulations;

Issued product quality and import guidelines to check recalcitrant PSPs and incorporate them into draft NPA regulations; Amended Petroleum Products Marking Scheme LI 2187 (yet to be assented); Insist that all locally supplied products must be via a BRV fitted with the Authority’s tracking device; Developed Bulk Road Vehicle LI (2257);.

Facilitated an effective collaboration with National Security and the Ghana Police;. Reviews export license requests critically by confirming import partner in the destination country; and Sanctions stations who fail the Marker concentration test.

Source: NAM NEWS NETWORK