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Ghana fuel shortage looms as central bank rations dollars

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Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for the West African nation jumped to $450 million in May, from $250 million in January, according to two people with knowledge of the matter. The central bank is only offering about $100 million a month at its foreign exchange auctions, and licensed bulk distributors can no longer plug the shortfall in the black market, the people said, asking not to be identified as the matter isn’t public.

African governments face stark choices as Western sanctions on Russia disrupt global energy markets and prices soar. Though Africa is home to several major producers of crude oil, the continent has limited capacity to turn that into fuel for cars, trucks and planes.

Ghana’s central bank is reluctant to spend its limited dollars on importing fuel, though it’s also looking at ways to boost its foreign exchange holdings, the people familiar said. Those reserves stood at $8.34 billion at the end of April, down from $9.7 billion at the end of last year, according to the central bank.

The nation’s challenge has been increased as the cedi weakened 22% against the dollar this year, the worst performance among African currencies tracked by Bloomberg. The country’s inflation rate  jumped to 27.6% in May, the highest level in more than 18 years, as food and transport costs surged.

A spokesman at the Bank of Ghana could not immediately comment when reached by phone. A spokesman for the Ghana Chamber of Bulk Oil Distributors declined to comment.



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Ghana has one-month crude oil supply – NPA

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The National Petroleum Authority (NPA) has revealed that Ghana currently has a one-month supply of crude oil in storage capacity.

The Authority, however, is assuring the populace that there is no cause for alarm as they have the product available for the consuming public.

The admission follows Bloomberg’s prediction that Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for Ghana jumped to $450 million in May, from $250 million in January.

The Central Bank is only offering about $100 million a month at its foreign exchange auctions making dollars difficult for the oil marketing companies to come by.

But the Director of Communications at the NPA, Kudus Mohammed, tells JoyNews in an interview that the situation is under control.

“We don’t have to grant permission to an unnecessary number of vessels that might bring the product so that you will be finding it difficult as to where to put them. So there is a certain regular timetable that guarantees who brings what at what time and the Planning Department is able to gauge at a particular time, what is the need of the consuming public, what is available across the country and who should actually be granted a permit.

“Diesel particularly is becoming a very scarce commodity in the market. So what is primarily important is the access of it and the regular amount which is supposed to be available to the consuming public as and when they will want it,” he told host George Wiafe.  



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Ghana has one-month crude oil supply – NPA

Published

on


File photo

The National Petroleum Authority (NPA) has revealed that Ghana currently has a one-month supply of crude oil in storage capacity.

The Authority, however, is assuring the populace that there is no cause for alarm as they have the product available for the consuming public.

The admission follows Bloomberg’s prediction that Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for Ghana jumped to $450 million in May, from $250 million in January.

The Central Bank is only offering about $100 million a month at its foreign exchange auctions making dollars difficult for the oil marketing companies to come by.

But the Director of Communications at the NPA, Kudus Mohammed, tells JoyNews in an interview that the situation is under control.

“We don’t have to grant permission to an unnecessary number of vessels that might bring the product so that you will be finding it difficult as to where to put them. So there is a certain regular timetable that guarantees who brings what at what time and the Planning Department is able to gauge at a particular time, what is the need of the consuming public, what is available across the country and who should actually be granted a permit.

“Diesel particularly is becoming a very scarce commodity in the market. So what is primarily important is the access of it and the regular amount which is supposed to be available to the consuming public as and when they will want it,” he told host George Wiafe.  



Source link

Continue Reading

Business

Ghana has one-month crude oil supply – NPA

Published

on


File photo

The National Petroleum Authority (NPA) has revealed that Ghana currently has a one-month supply of crude oil in storage capacity.

The Authority, however, is assuring the populace that there is no cause for alarm as they have the product available for the consuming public.

The admission follows Bloomberg’s prediction that Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for Ghana jumped to $450 million in May, from $250 million in January.

The Central Bank is only offering about $100 million a month at its foreign exchange auctions making dollars difficult for the oil marketing companies to come by.

But the Director of Communications at the NPA, Kudus Mohammed, tells JoyNews in an interview that the situation is under control.

“We don’t have to grant permission to an unnecessary number of vessels that might bring the product so that you will be finding it difficult as to where to put them. So there is a certain regular timetable that guarantees who brings what at what time and the Planning Department is able to gauge at a particular time, what is the need of the consuming public, what is available across the country and who should actually be granted a permit.

“Diesel particularly is becoming a very scarce commodity in the market. So what is primarily important is the access of it and the regular amount which is supposed to be available to the consuming public as and when they will want it,” he told host George Wiafe.  



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