The Progressive Nationalist Forum (PNF)is disturbed at the state of mismanagement of the country’s petroleum sector especially with regards to the importation of crude oil and Petroleum products into the country. There are serious questions bordering on accountability which have not been answered.

Since the Tema Oil Refinery stopped production of refined petroleum products, two companies – CIRRUS and CHASE Petroleum have been the only companies contracted to import petroleum products. The circumstances behind the monopoly of product importation by the two companies are not clear. The government and the National Petroleum Authority need to explain to Ghanaians the terms on which the two companies won all the tenders. Even when the Tema Oil Refinery could not discharge crude brought in by Sahara, CHASE Petroleum was off-loading refined products at the same time. We therefore want to know whether the government preferred product importation to domestic refinery of crude and hence the attention given to the operations of CIRRUS and CHASE at the expense of TOR.

We are also alarmed that in spite of the major rehabilitation undertaken by TOR, government had no interest in securing crude oil for the company. At the same time, TOR workers were paid for no work done. These two circumstances demonstrate clear examples of causing financial loss to the state.

Government has not yet explained to Ghanaians the circumstances under which SCANOIL went to lift crude oil from Nigeria and was chased out. We need to know whether SCANOIL won a contract to lift crude or not. We have cause to believe that some people in the government were doing a ‘deal’ at the blind side of the President. We are therefore calling on the Registrar General to declare publicly the directors and shareholders of SCANOIL. This will clear the air on the controversy behind the accusations by TOR workers that some Cabinet Ministers in the government are doing ‘deals’ in the oil sector. The assurances by the President to investigate the allegation cannot be taken seriously. Therefore CHRAJ and SFO should start independent investigations into the matter as a matter of urgency.

We have also observed the laxity on the part of the government to adjust petroleum prices despite increased crude oil prices. We are therefore worried about the inconsistency of a government whose policy focus is to collect more revenues but which is also under-pricing petroleum products and thereby leading to revenue losses.

There is currently confusion over how much consumers are to pay at the pumps for petroleum products. The announcement of the percentage adjustment without the nominal prices is not only non-transparent but also a deception of the highest level which must be condemned by all. Certainly, government is being politically expedient instead of seeking the real interest of the Ghanaian economy.

We suggest that government should as a matter of urgency publish and explain the petroleum pricing formula. Government should also tell Ghanaians how much it is subsidizing petroleum and how it is being financed. There should also be a time table for lifting of crude oil to TOR so that all Ghanaians will follow the operations of TOR and ensure accountability in the oil sector.


Credit: Richard Nyamah
Spokesperson Progressive Nationalist Forum