[ 2014-10-20 ]

‘Fuel prices will not be reduced’
Government says it cannot immediately reduce the
prices of petroleum products in the country
despite a drop in the price of crude oil on the
world market.

Emmanuel Armah-Kofi Buah, Minister of Energy and
Petroleum, who made this known, last Friday in
Accra, said the fall in the price of crude oil on
the world market was still in a transitional
trend.

In view of this, he said government will not make
any decision with regard to the reduction of the
price of oil until it had studied the trend
fully.

Speaking at the launch of the Petroleum Commission
and National Insurance Commission’s Protocol on
the placement of upstream insurance in the
country, he said, “The reduction in the price of
oil and the appreciation of the cedi are
transitional trends, which we cannot just rely on
to make decisions.”

Crude oil prices on the world market have declined
from an average of $109 per barrel in January,
this year to $81.14.

Local Content
Touching on the need to promote the participation
of Ghanaians in the energy sector, he disclosed
that the ministry was working out ways to ensure
that many Ghanaian companies make significant
entry into the power subsector.

According to the Minister, there was the need for
Ghanaian insurance companies to become competitive
“and challenge themselves to maximize in-country
premium retention.”

He stressed the need to promote made-in-Ghana
goods and services in the country’s petroleum
sector to reduce capital flight.

The Minister reiterated government’s commitment
to providing an enabling environment for
businesses, stressing that “but local service
providers must take their chances.”

Ghana Losing Money
An official of Ghana Oil and Gas Service Insurance
Pool (GOGIP), in a revealed that the country was
losing huge sums of monies due to capital flight
in the petroleum sector.

According to him, GOGIP generated about $61
million through premium covers from 2009 to 2013.

Sadly out of this colossal amount, only $ 1million
came to GOGIP with the rest going to foreign
insurance companies in the form of reinsurance, he
said.

Source - Daily Guide

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