Players in the oil industry are suggesting a full deregulation of the petroleum sector to check the rampant shortage of the product experienced recently.

The deregulation process started more than ten years ago, leading to the involvement of the private sector in the importation of both crude and refined petroleum products. But shortages of fuel have not stopped.

In a discussion on Ghana’s petroleum sector on Joy FM’s current affairs programme, Front Page, the industry players said a further deregulation could be the antidote.

The Tema Oil Refinery (TOR) has, for a while, been unable to import crude oil because it is heavily indebted to its bankers.

As a result, TOR, Ghana’s biggest importer of crude, couldn’t secure Letters of Credit or LCs to guarantee payment for products from suppliers.

At a point, the refinery cut off supplies to some oil marketing companies or OMCs who are indebted to it.

This sparked off a series of fuel shortages across the country.

Currently, TOR, through ECOBANK, has managed to secure 997 million barrels of crude currently being discharged at the Single Point Mooring near Tema.

At least, Ghanaians are assured of regular supplies for the next couple of weeks.

Policy Analyst, Bright Simmons said the current government to government contract for oil lifting is not reliable.

“That is not sustainable and probably not appropriate,” he said.

Coordinator of the Oil Marketing Companies, - retailers of fuel, - Kweku Agyeman-Duah suggests government must fully deregulate the sector.

“We have to be bold enough to really go ahead and do the full deregulation and ensure that we have our factories turning,” he indicated.

One-time energy Minister under the Kufuor administration, Joseph Addah, believes cost-sharing is one way out.

Chief Executive of the National Petroleum Authority, Alex Mould, says a new contract for further delivery has been signed and crude oil is expected in December.

Play the attached audio for excerpts of the discussion

Source: Joy News/Myjoyonline.com/Ghana