Page 12 - AfrOil Week 05 2022

AfrOil POLICY AfrOil

The PSRL generated more than GHS2.5bn Liquefied Petroleum Gas (LPG), diesel and
($398mn) in revenue for the government petroleum recording yet another jump at the
between the date of its founding in 2015 and pump, in spite of the suspension of the Price
October 2021. Stabilisation and Recovery Levy (PSRL),” the
In related news, the LPG Marketers Asso- report said. “The pending increase comes on
ciation of Ghana has asked the government to the back of an 8.52% increase in the price of
reduce taxes on LPG, partly in response to rising Brent crude, a 5.5% rise in LPG price, a 6.23%
world crude oil prices and partly to encourage increase in the price of gasoline, and a 9.86%
domestic consumption of LPG. jump in gasoil price; all on the international oil
The industry group noted that consumption and fuel market.”
of LPG had dropped to 28,000 metric tonnes Furthermore, they said, the reinstatement of
in the second half of 2021 and attributed the the PSRL would also lead to an increase in fuel
decline to rising prices for the fuel. prices. This development would probably push
prices up by GHS0.25 per litre, they stated.
Pricing predictions The analysts also predicted that Ghana’s
It did so shortly after a local think tank, the major fuel sellers, known locally as oil mar-
Institute for Energy Security (IES), predicted keting companies (OMCs), were likely to start
that Ghana was likely to see pump prices for selling diesel and gasoline at prices higher than
petroleum products rise soon despite the gov- GHS7.00 per litre within the next week.
ernment’s recent decision to suspend the PSRL. Some OMCs, including Total and Puma
In a recent forecast report, IES analysts said Energy, already began selling diesel for more
they expected prices to climb as of February 1 as than GHS7.00 per litre a few weeks ago, during
a result of rising world market prices for crude the last pricing window. Ghanaian transport
oil, as well as the anticipated depreciation of the operators have reportedly said that they will
Ghanaian cedi against the US dollar in the forex announce new fares on February 2.
market. Fuel prices in Ghana are not regulated. As
“Over the next two weeks, the Institute for such, international market development are the
Energy Security (IES) foresees the price of main driver of pump prices. ™

PROJECTS & COMPANIES
NNPC report says Port Harcourt refinery

rehabilitation is running behind schedule

NIGERIA NIGERIAN National Petroleum Corp. (NNPC)
has said that its effort to rehabilitate Port Har-
court Refining Co. (PHRC) is running behind
schedule.
The local Punch daily said it had viewed a
report from NNPC stating that cumulative pro-
gress on the project should have amounted to
10.7% by this date. So far, though, the rehabil-
itation project is only 6.3% complete, and the
government-owned company said in the report
that it had ordered its contractor, the Italian
company Tecnimont, to close the gap.
“[The] contractor is to issue a mitigation plan
to address this variance and to ensure that the
project is completed within schedule,” the report
said, according to Punch. Tecnimont won the overhaul contract last August (Photo: Tecnimont file photo)
Tecnimont is supposed to due the rehabilita-
tion of the 210,000 barrels per day (bpd) PHRC variant, according to refinery staff cited in the
complex by early January of 2025, 44 months NNPC report. The news casts further doubt on
after the date that its contract took effect – April the contractor’s ability to rehabilitate 90% of the
6, 2021. However, it has encountered delays as refinery’s capacity by the end of next year.
a result of worldwide supply chain disruptions Additionally, it has also experienced chal-
and the coronavirus (COVID-19) pandemic, lenges as a result of problems with Nigeria’s East-
including the latest outbreak of the omicron West Road Corridor.

P12 www. NEWSBASE .com Week 05 02•February•2022