Gold for Oil: NPA to Supply Fuel to OMCs With More Than 45 Outlets

The National Petroleum Authority (NPA) says it will sell oil to Oil Marketing Company (OMC) with more than 45 outlets under the Gold for Oil Program.

According to the NPA, the ultimate aim of the government in introducing the program is to ensure that fuel is affordable.

Speaking at the Meet the Press Series Wednesday, the Chief Executive Officer of the NPA, Mustapha Hamid said he had a number of calls asking him why first consignment of the oil could not reflect in prices at the pumps.  

“Now what happened was that of course the 40,000 metric tons is not enough to cause a significant change in the prices. But even so, one of the highest buyers in the gold for oil product in the first consignment was Goil. Goil’s prices were brought down to about 70 pesewas. Other OMC’s that also bought some consignment of gold for oil gave us a reduction of about 10-20 pesewas that is still not significant though.

“So, this time, NPA’s gold for oil team which is led by the deputy chief executive Fred Okudzeto, Sheila Addo, the policy coordinator and there is Abass Tashiti, they’ve come up with a brilliant idea with this second consignment of gold for oil that has come. We are going to sell to OMC’s with not less than 45 outlets. There are 150 oil marketing companies. If you are selling to all the 150 companies you will not realize the impact,” Mr. Hamid stated.

He continued: “But if you are selling to the people with the highest number of outlets, then its effect will be felt across the country in terms of the price reduction. So, this time we are monitoring to ensure that we are selling only to OMCs with the highest presence in terms of number and also the spread of outlets across the country.  So that the effect is felt across the country.”