No objection to the government’s gold-for-oil scheme, said CBOD CEO

According to Chief Executive Officer, Dr Patrick Ofori, the Ghana Chamber of Mass Oil Distribution (CBOD) has absolutely no objection to the government’s gold-for-oil (G4O) scheme.

Dr Ofori said the Chamber also has no objection to the involvement of the Bulk Oil Transport and Storage Company (BOST) in the management of strategic petroleum stocks in the downstream petroleum sector.

However, CBOD advocates a level playing field, where BOST, in particular, is not singled out for preferential treatment that gives it an unfair advantage over bulk distribution companies.

“What we are saying is that they should create an environment where people can compete fairly and on their own terms,” Dr Ofori said in an interview.

“We don’t want laycans [the mooring schedules of oil tankers at the port] being skewed in favor of BOST. “If BOST is willing or intends to compete in the merchandise import business space, it must do so on a balance sheet basis and it must be able to raise letters of credit to conduct business. commerce.

“If their internal structure and books are strong enough, they should be able to convince international oil trading companies to access open lines of credit so they can participate fairly and efficiently and efficient. But they shouldn’t be defended by state organizations and ultimately trying to claim effectiveness based on state steroids.

Dr Ofori warned that the preferential treatment BOST receives in the form of misaligned and currency allocations could distort markets, potentially placing a financial burden on an already existing economy. difficulties and future additional oil taxes similar to ESLA and TOR taxes.

“What we object to is the central bank underwriting the risks associated with BOST’s business,” he said.
“Over the years, GNPC has supported BOST. It wasn’t well. And before G4O [Gold for Oil], some BDCs even complained about the products they put through the BOST system and they had trouble reporting.

“Inspection companies complain of higher-than-normal transmission loss when product is shipped to BOST facilities. These are the concerns we are raising.

Dr Ofori pointed out that CBOD is promoting a level playing field that helps ensure the sustainability and profitability of the downstream oil industry, as well as safeguarding Ghana’s energy efficiency and security.
“G4O is not our problem. Nor do we object to BOST’s commitment to its primary mission of managing strategic oil reserves.

“But what we are looking for is a level playing field where we can be productive and do our business. After all, while our members pay $300,000 in licensing fees, BOST doesn’t pay any of those fees and charges,” he said.

“While each of us earns a BOST margin, none of the BDCs benefit from it. Apart from all these perks, if they still plan to skew a portion of the market that would allow BOST to contribute. a certain percentage of products and benefit from preferential treatment when it comes to laycan and forex allocations, which is clearly cause for concern.

Second, it means that the private sector is subjected to excessive bullying and discrimination

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