BDCs object to govt’s plan to designate BEST as sole off-taker
The Chamber of Bulk Oil Distributors (CBOD) has voiced its objection to the government’s proposal to designate the Bulk Energy Storage and Transportation Company (BEST) as the sole off-taker for Sentuo Oil Refinery Limited’s production under the Gold for Oil programme (G40).
In a statement issued in Accra and signed by Dr. Patrick Ofori, the Chief Executive of CBOD, the Distributors expressed concerns that the proposal contradicts the deregulation policy governing the petroleum downstream sector.
They alleged that the government’s aim to indirectly control the exchange rate by channelling Sentuo Oil Refinery’s cedi liquidity through BEST to manage USD allocations under the G40 programme is at odds with established policies.
Dr. Ofori appealed to Dr. Alhaji Mahamadu Bawumia, the Vice-President and Head of the Economic Management Team (EMT), to reconsider the proposal, asserting that achieving the necessary USD liquidity for the G40 programme could be accomplished without tying Sentuo Oil Refinery’s entire output to BEST.
The statement emphasized the potential market challenges and deficiencies that could arise from the proposed arrangement, warning of the risks associated with creating a monopolistic market controlled by a single entity.
The Chamber highlighted the importance of fostering competition and private sector involvement within the industry to drive efficiency, lower prices, and promote market expertise.
Furthermore, the CBOD underscored the significant contributions of the Bulk Oil Import, Distribution, and Export Companies (BIDECs) to national development, including ensuring energy sufficiency during supply shortages and investing in storage infrastructure.
The Chamber urged policymakers to reconsider their stance and adopt a collaborative approach that leverages the strengths of all entities involved in the downstream petroleum sector.
They reiterated their commitment to working with the government to develop a G40 framework that fosters fair market practices, transparency, innovation, sustainability, and efficiency within Ghana’s petroleum industry.
