The National Petroleum Authority (NPA) has decided to regulate the prices of products in a short term until the volumes go up significantly.
This move by NPA is to ensure that the prices of petroleum products imported under the Gold-for-Oil (G40) programme reflects at the pumps could be of benefit to consumers.
Also, the NPA will work with the Bulk Oil Storage and Transportation (BOST) Company Limited to negotiate a reasonable prices with international oil traders to ensure that the landed prices of products purchased under the Gold-for-Oil programme is always competitive.
In a press statement, the NPA said it would approve the prices at which BOST would sell the products to bulk import, distribution and export companies (BIDECs) “the price at which the BIDECs will sell the products to oil marketing companies (OMCs) will also be approved by the NPA”.
“The applicable exchange rate for pricing the products supplied under G4O will be based on the average rate at which the gold was purchased from licensed gold exporters by the BoG.
“The BoG ordinarily purchases the gold aggregated by the Precious Minerals Marketing Company (PMMC).
“The NPA will put measures in place to ensure that OMCs that lift products supplied under the G4O programme pass the price on to consumers accordingly. In this respect, BIDECs and OMCs which lift and supply G4O products will sell at the ex-refinery and ex-pump prices that will be determined by the NPA. If there must be co-mingling of products supplied under G4O and other sources, the ex-refinery and ex-pump prices will be computed using a weighted average.
“All BIDECs and OMCs which wish to purchase products under the G4O programme will be required to sign an undertaking confirming their willingness to comply with the terms and conditions for partaking in the purchase and sale of G4O products,” the statement said.
