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Recent complaints of fuel quality linked to Gold4Oil policy?

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Recent complaints of bad fuel that has hit the country over the past few weeks have been linked to the government’s infamous Gold4Oil policy.

Petroleum consumers, especially gasoline (petrol) car users have taken to social media to complain about having to change their car plugs or undergo forced maintenance services on their vehicles after visiting some Oil Marketing Companies to be served. The complaints which peaked in the months of September and October had some users share their frustrations on social media (X,) with some stating they had to change car plugs as many as 4 times this year due to challenges such as delayed changes in gears, jerking and misfiring plugs, leading to an overall poor engine performance.

Some Ghanaians on social media lament the negative effects of fuel purchased on their vehicle engines

The Regulator of the Petroleum industry, the National Petroleum Authority (NPA), who acknowledged receipt of numerous complaints of reduced performance of vehicles attributed to purchased fuel from some retail stations in the country, insisted the fuel met the national standards for fuel specifications set by the Ghana Standards Authority (GSA).

The NPA however admitted that in recent times, fuels imported into the country contained levels of manganese closer to the maximum allowed limit of 18mg/l compared to the fuels with lower manganese levels hitherto. These high levels of manganese, it added were the root cause of the complaints received especially from turbo engine vehicles which recommend the use of gasoline that does not contain manganese-based additives.

The NPA added that in response to the issue, it had initiated steps to review the national fuel specification standard which will reduce the allowable manganese level in gasoline to 6mg/l, further directing all gasoline imports to comply with the proposed manganese standards.

But in an interesting twist, Honorary Vice President of Policy Think Tank, IMANI Africa, Bright Simmons, has tied the influx of high manganese-based gasoline to the Gold 4 Oil programme which seeks to barter the country’s gold for refined crude products in a bid to help stabilize the local cedi against the US dollar.

In a post on X, Bright Simmons writes; “Ghana’s gasoline/petrol & diesel regulator, NPA, says fuels being imported into Ghana nowadays have too much manganese. But they don’t say what has changed. Historically, Ghana imported most of its fuels from markets that ban or heavily limit manganese. Then “Gold 4 Oil” came.”

Mr. Simmons will attach images of Russia’s Gasoline Specification which allows 18mg/l for regular fuel (RON 91) an insinuation that Ghana had started importing fuels from Russia following the Gold 4 Oil policy.

In the recent past, a number of Asian countries have had to grapple with a similar phenomenon. Honda Motors in 2018 complained to Pakistani authorities over high levels of manganese in the country’s fuel that it said was damaging its vehicles engines.

Japanese automotive manufacturers lodged a similar complaint, forcing authorities to announce a phase-out of the metal content by 2019.

But how dire is the presence of high manganese-additive in fuel to vehicles? A literature review of MMT effects on Gasoline Vehicles in the April 2016 edition of SAE International Journal of Fuels and Lubricants by S. Kent Hoekman and Amber Broch established an inversely proportional relationship between plugging time and Mn concentrations in modern vehicles.

The paper further explains how automakers in a bid to comply with stringent emission standards, employ control systems that include; the usage of catalysts with higher cell densities, higher surface areas, and thinner cell walls which allow rapid heating of engines at higher temperatures.

The end result it adds is an increased formation of Manganese Oxide (Brown-Black in colour) and the creation of deposits that easily adhere to the catalyst surface and worsening plugging issues.

A situation similar to the complaints by petroleum consumers in the country.

Government officials have been tight-lipped on the country of origin of the fuels under the G4O programme since the policy rollout in January this year.

Deputy Minister for Energy, Andrew Egyapa Mercer in February confirmed LITASCO (on whose behalf LUKOIL operates at least 4 refineries in Russia) as a supplier of the first batch of fuel delivered under the programme, but said he could not confirm the source of the refined product.

The NPA avoided a similar question when it met the media for a briefing on the policy at about the same time.

This was despite evidence the SCF YENISEI vessel, which graphic.com.gh confirmed in an online report shipped the first consignment of fuel to the Tema Port, arrived from the VYSOTSK Island in Russia where LUKOIL-II holds a distribution and transshipment facility for the export of oil.

Data published by the Ghana Statistical Service barely two days ago seems to corroborate the assertions of Bright Simmons. Keeping in mind, the G4O policy was rolled out in January this year.

In the recently released Ghana 2023 mid-year trade report, Russia has become the second largest source of Ghana’s mineral fuels and oils import, providing nearly 15.0% of all oil imports; a sharp contrast to a similar trade report released in 2022 which had Russia making no appearance as a country source for the import of mineral fuel and oils.

Ghana’s oil import by country in 2022 (L) vs first half 2023 (R)

Another trivial but striking coincidence is the incidence of complaints on social media linked to consumers of the largest OMC in the country, GOIL.

The partly state-owned company, which has the largest market share of over 20%, also receives the largest share of fuels brought into the country under the G4O programme, according to the NPA. It thus wouldn’t be far-fetched to presume they would be the most affected if indeed the fuels under the G4O policy were the source of the high level of manganese causing havoc to vehicles.

But beyond this, there are increased calls for the NPA to face some legal action. The Chamber of Petroleum Consumers (COPEC) has threatened a suit accusing the NPA of “reneging on its core mandate of ensuring every litre of petroleum products being sold at the various pumps meets the minimum standards” while others on social media are encouraging the car community “to actively participate in shaping laws and standards that affect the community”

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Ghana Reports First Oil Output Increase in Five Years With Production Rising By 10.7%

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Ghana has recorded a 10.7% increase in crude oil production in the first half of 2024, marking a reversal in a five-year trend of declining output, according to a report by Ghana’s Public Interest and Accountability Committee (PIAC).

The growth was largely driven by the Jubilee South East (JSE) project, managed by Tullow Oil, which began production in late 2023. This addition to Ghana’s Jubilee oil field helped boost production to 24.86 million barrels by June 2024, compared to a 13.2% decline over the same period in 2023.

PIAC’s half-year report also highlighted a significant rise in petroleum revenue, which surged by 56% year-on-year to $840.8 million by mid-2024. Ghana, a country that began oil production in 2010, depends on petroleum revenue for around 7% of government income. The report further noted a 7.5% increase in gas output, reaching 139.86 million standard cubic feet by June.

Despite the positive trend, Isaac Dwamena, coordinator of PIAC, cautioned that Ghana’s petroleum sector faces both technical and financial challenges. Ghanaian law requires oil companies to allocate at least 12% of project shares to the state, a mandate Dwamena noted can deter investment due to the high cost. “The state can take 15%, 20% carried interest based on negotiations, and that has been a disincentive,” he explained.

To further drive production, Ghana is planning to sell more exploration rights, aiming to harness its fossil fuel resources while also generating funds to support its energy transition. Major oil companies operating in the country include Eni, Tullow Oil, Kosmos Energy, and PetroSA.

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President urges universities to strengthen ties with industries

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President Nana Addo Dankwa Akufo-Addo has called on universities in Ghana to strengthen ties with government, industries, and the communities they serve to ensure that researches are aligned with the needs of society.

That would contribute directly to the realisation of national development goals, he said.

The President made the call at Nyankpala during a ceremony to inaugurate a three-storey multi-purpose building for the University of Development Studies (UDS).

The building fulfills the President’s promise to the UDS during its 25 Anniversary celebrations.

It is named the “Silver Jubilee Building” in remembrance of the President.

The facility boasts of offices, conference halls, lecture theaters, and houses some faculties of the university.

President Akufo-Addo said universities were “breeding grounds” for ideas, researches and innovations that drove the nation’s progress and should remain actively engaged in the development process.

He said government believed in educating the population as the bedrock of a thriving democracy, a vibrant economy and a just society.

The President, thus, outlined some policies implemented aimed at improving access to education at all levels, which included the “no guarantor policy”.

He said the policy had improved access to tertiary education as it had eliminated financial barriers that historically prevented brilliant students from pursuing higher education.

The “no guarantor policy” for student loans increased the numbers of students seeking tertiary education from 443,978 in the 2016-2017 academic year to 711,695 in the 2020-2023 academic year, an increase of 60.3 per cent.

President Akufo-Addo said his government had extended considerable energy and resources to the education sector, recognising it as the most powerful tool to transforming the nation.

He said: “The considerable budgetary allocations within the period totaling some GH¢12.8 billion, amply demonstrates the shared determination of the Akufo-Addo government to ensure that education becomes a catalyst around which the transformation of our nation revolves.”

Source: GNA

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We’ve learnt our lessons; we won’t borrow to finance 2024/2025 crop season

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The Ghana Cocoa Board (COCOBOD) has announced that it will transition to self-financing for the 2024/2025 cocoa crop season, starting in September 2024.

For the past 32 years, COCOBOD has relied on offshore borrowing to finance cocoa purchases through its cocoa syndication programme. However, the organization is shifting its strategy to reduce dependency on external funds.

Speaking to the media on Tuesday, August 20, COCOBOD’s CEO, Joseph Boahen Aidoo, explained that this new approach is expected to save an estimated $150 million.

“Is it good that always COCOBOD should be heard going to borrow? Are we comfortable with that tag? Today, you have heard that COCOBOD is not going to borrow. It is quite a good time for any human being to learn his or her lessons.

“In 32 years, we have learned our lessons and we think that it is high time we wean ourselves from the offshore international financial markets and then finance the crop ourselves here and that is exactly what we are going to do. And I think it comes with a lot of projectory benefits.

“We are looking for $1.5 billion this crop season and looking at the interest rates last year, which were over 8 percent, plus the cost, it means that we can save more than $150 million by the decision not to go offshore.

He also denied assertions that COCOBOD was short-changing farmers with its pricing of cocoa.

“It is not true that COCOBOD is not giving the farmers a fair price. If you follow the narrative, you will notice that from 2017 on, COCOBOD has even been more than fair.

“The government had been more than fair to farmers because this was a time when prices had collapsed but the government and COCOBOD did not reduce the farmers’ price.”

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