The Chamber of Oil Marketing Companies (OMCs) has issued a warning about a looming fuel shortage in the coming days.
The OMCs cited two key factors: the suspension of the gold-for-oil programme and the halted operations of Sentuo Oil’s refinery.
Dr. Riverson Oppong, the Chief Executive Officer (CEO) of the Chamber, explained that the petroleum sector had anticipated this issue as soon as the gold-for-oil programme was introduced.
“When the gold-for-oil programme started, we saw its peak, and we knew a decline would follow. It’s a simple pattern, when there’s a peak, there’s bound to be a fall. We raised concerns with the government, but they were not addressed,” Dr. Oppong said.
The gold-for-oil programme, launched in January 2023, was intended to ease Ghana’s oil import burden and reduce fuel prices.
However, in August 2024, the Bank of Ghana (BoG) capped allocations for the programme and announced plans to gradually phase it out.
Despite its initial goals, the programme faced structural flaws and limited effectiveness.
Dr Oppong also pointed to the operational halt at Sentuo Oil’s refinery, which has compounded the situation.
The refinery had been crucial in processing and refining domestic oil, and its closure has significantly reduced local refining capacity.
“With the reduction in supply and the shutdown of Sentuo Oil, we anticipated this fuel shortage, particularly with Premium Motor Spirit (Petrol).
“Bulk Distribution Companies (BDCs) stopped importing fuel due to the gold-for-oil programme,” he explained.
With fuel prices already under pressure and the supply chain facing mounting challenges, Dr. Oppong stressed the urgent need for government action.
“Immediate intervention is essential to prevent a full-blown crisis,” he warned, urging the government to take swift action to avoid further disruption in the fuel supply.
The Chamber’s warning underscores the critical need for quick and decisive action to prevent widespread shortages, which could have significant impacts on consumers and the broader economy.