Persistent fuel shortages: Government's headache

Persistent fuel shortages: Government's headache
By Masahudu Ankiilu Kunateh, Ghanadot

Accra, Sept 28, Ghanadot - One major problem which the Mills-led administration seems to have not got a hold on, is finding a lasting solution to the country’s recurrent fuel shortages that have hit the country over the last nine months.

From last Saturday to date, most fuel stations in the capital city Accra, and in various parts of the country, had ran out of fuel, resulting in panic buying at the few stations that had some stock.

The situation has compelled most motorists to scout for the scarce commodity, going from one filling station to the other in the city, with many expressing concerns as to when the shortage, which is almost becoming a phenomenon, would be adequately addressed.

The last time stocks went dry, cool-headed, Alex Mould, Chief Executive Officer (CEO) of the National Petroleum Authority (NPA) attributed the shortage to bad weather on the high seas, which delayed the vessel bringing in the fuel. This was days before the visit of US President Barack Obama in July this year.

This time round, the Deputy Minister of Energy, Dr. Kwabena Donkor, has been attempting an explanation to the recent shortages at a news conference in Accra yesterday.

He cited the outstanding Tema Oil Refinery (TOR) debt, which was making it difficult for the government to secure letters of credit to purchase crude oil, but was quick to add that the government was working round the clock to clear the TOR debt.

“The government has been working assiduously to resolve this issue once and for all, rather than do a piecemeal. A transactional advisor, Ecobank Transnational Corporation, has been appointed to raise money to pay off the TOR debt once and for all,” he noted.

He explained that the TOR had not incurred any further under-recoveries since the beginning of the year.

“Indeed, we have cleared the TOR under-recovery for 2008. Whatever under-recoveries are still due TOR, originate from 2005 to 2007,” he said.

Despite these challenges, however, he noted that the country had up to three weeks reserve at any given time, but stated that the vessel which was supposed to have brought in gasoline, was facing some challenges, so could not deliver the commodity, which had resulted in the current bottleneck .

He gave the assurance that that by the close of works yesterday, the situation would have been curtailed, as the government had made provision for an emergency inflow of some 34,000 metric tonnes of fuel, to be disseminated throughout the regions, adding that another ship laden with oil had docked for delivery.

He also hinted that the Tema Oil Refinery, which was shut down in February 2009 for maintenance, would in the few weeks to come start refining crude oil.

On the Ghana Nigeria oil deal, Dr. Donkor noted that the government was making headway, and was confident that Nigeria would open its oil taps for Ghana soon.

Recently, the President of Ghana, H. E. Prof. John Evans Atta Mils, struck a deal with Muammmar Al-Qadafi at the 13th Ordinary Summit of the African Union in Libya.

The Libyan deal comes a few a months after Ghana secured assurance from the Nigerian government to supply crude to Ghana on friendly terms.

Under that agreement, Nigeria pledged to supply Ghana with 65,000 barrels of crude daily, on 90 days credit terms.

Ghanadot