Sentuo Oil Refinery urges government to price Ghana’s local crude oil in cedis
Sentuo Oil Refinery has appealed to the government to price local crude oil in Ghana cedis for the two local refineries, saying the current pricing model is resulting in losses through cedi-dollar exchange differentials on every tonne of crude refined.
Sentuo Oil Refinery has urged the government to price Ghanaian crude oil in local currency, the cedi, to avoid significant financial losses caused by unfavorable cedi-dollar exchange rate fluctuations. The company's management explains that the current pricing model, which requires local refineries to buy crude oil in US dollars, leads to substantial losses on every tonne of refined crude.
Sentuo Oil Refinery's exposure to these exchange rate losses is due to a legal obligation to purchase Ghanaian crude oil, including sweet crude from the Jubilee Field, in US dollars. Despite paying for the domestic product in cedis, the company is forced to convert cedis to dollars at typically high rates to complete the transaction.
Sentuo Group's Executive Chairman, Xu Ningquan, brought this issue to the attention of the Energy Committee of Parliament during a meeting on September 23. He stated that the company currently produces 40,000 barrels and intends to increase production to 100,000 barrels by adding another 60,000 barrels. Ningquan appealed to the government to intervene and guide the Ghana National Petroleum Corporation (GNPC) to sell local crude oil directly to local refineries.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
