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Company News of Monday, January 21, 2019
Source: www.ghanaweb.com
2019-01-21
play the videoKofi Bentil, Vice President of IMANI Ghana
Policy badysts are calling on the government to regularize the gasoline sector by focusing on the price of gas as it is the base of our economy.
A study on gas price formation in Ghana, conducted by IMANI Ghana and Fondazione Eni Enrico Mattei (FEEM), indicates that the average cost of gas delivery in Ghana is 6.55 USD / Mbtu, compared to average selling price of 8.55 USD / Mbttu to energy producers.
IMANI Ghana Vice President Kofi Bentil pointed out that the country's petrol sector would be in a disastrous state if the government did not set the price of gas correctly.
Adding that inconsistencies in the regulation of natural gas in the country should currently be addressed urgently by the government.
"If we do not set the price of gas correctly, we will do damage in our area. The regulation of natural gas today is not consistent. We do not know what we want to do with it … It's not a good thing that our gas business is everywhere. I hope that from today we will set the tone to compel our leaders to formulate something coherent so that we know we are on a certain part. "
Regulation of gas institutions
Dr. Steve Manteaw, Chair of the Committee for the Public Interest and Accountability (PIAC), on his side called for the regulation of subsectors, including the Petroleum Commission, the Energy Commission, among others in Ghana, adding that they should all be grouped together in one and the same sector. body.
The policy badyst also stressed that it was important to clarify the starting and ending points of the upstream and downstream sectors in order to ensure uniformity of measures taken by gas in the country.
"I think the gas sector in general needs a lot of attention and we have to pay attention to institutional arrangements, there is a lot of overlap here and there. As for even negotiating gas prices … it was negotiated without the technocrats. You are only informed when prices have been negotiated and that is wrong. "
Contrary to Mr. Steve Manteaw's observation regarding the regulation of sub-sectors, Mr. Nii Darko Asante, Technical Director of the Energy Commission, believes that it would be wrong to create an organization for the petroleum sector due to differences between upstream and downstream sectors. downstream sectors.
"As for a single regulator for the entire oil sector, I would strongly suggest that even if some countries do, it will not be a good thing to do. Upstream problems and upstream pressures are totally different. Sometimes, they vary with the interest of consumers downstream … So, if you allow people upstream to control the entire chain, you will have very difficult decisions to make … So what decision of the gas master plan is that 39, there will be a process upstream? regulator and that there will be downstream regulation, the identity of this downstream regulator is always negotiated and discussed.
Government rent
Fondazione Eni Enrico Mattei, Senior Researcher, Manfred Hafner, also believes that external purchases have contributed to the growth of the country's economy and that, as a result, the government should strive to reduce the cost of government rents.
"We should also try to reduce overall government rent which is high enough for internationals and by reducing government rent, the price of gas will decrease … gas demand will also increase and as a result government revenues will rise again. have helped to develop the country's socio-economy. "
Gas pricing
Isaac Doku, commercial director of the Volta River Authority (VRA), also stressed the need for the government to reduce gas prices to help the private sector prosper.
He added that if there was mbad consumption by the private sector, the demand for gas would increase. Moreover, if the contribution to energy production is lower, the benefits can be pbaded on to the consumer.
"The key is to contribute to the generation of electricity for the grid. I think we have to try to reduce that consumption. Once we have made sure that these benefits benefit the consumer and that the private sector will have to be the driving force, and so on. the more they take, the more we can see an electrical growth with respect to demand. "
Dr. Theophilus Acheampong, lead researcher at IMANI Ghana, called for clarity and transparency on issues related to gas pricing. He believes that the reduction in gasoline prices will eventually result in a reduction in electricity rates.
"There is a lot of extra rent money going to the government and going beyond the actual cost of gas distribution. We say that we should perhaps consider an exam, but I recognize that the PURC started by looking at that. We still think that in terms of treatment, transportation and distribution costs, there must be an economic justification for that, which we do not currently think. It takes a lot of thought, a lot of clarity and transparency on the price, structure and architecture of gasoline. And in the end, we know that if the price of gas is lower, electricity rates will be lower, which will create jobs. "
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