Energy analyst Kwadwo Poku, is advocating for the patronage of petroleum products of small Oil Marketing Companies (OMCs) in the country.
According to energy analyst, the loyalty and continuous patronage of petroleum products of big OMCs in the country despite their continuous fuel price increments and non-adherence to the country’s petroleum price deregulation policy is unnecessary.
“The loyalty and patronage of petroleum products of the big OMCs is not necessary, because there are smaller OMCs that are new that are looking for space in the market and so do cheaper and better prices than the big OMCs even when the prices of petroleum products are generally high,” he said.
“If you look at Shell, Total, Puma and Goil, you find out that their prices are outrageous,” he added.
Mr Poku’s assertions follow recent increments in prices of finished petroleum products at the pumps by the major OMCs in the country.
Major OMCs in the country – Shell, Total, Puma and Goil – control over 50 per cent market share of Ghana’s downstream industry.
In his article titled Is petroleum price deregulation working for Ghanaians? and published on norvanreports, Mr Poku argued that despite a 73% fall in petroleum prices on the world market due to the Covid, major OMCs in the country failed to reduce petroleum prices at the pumps by the same margin.
Rather, a meagre 26% reduction in petroleum prices was given by the OMCs.
“Whenever there is a downward trend in international oil market prices, it is supposed to reflect in fuel prices but the OMCs don’t give Ghanaians that, fuel prices on the back of Covid-19 fell from $612 to $164, a 73% fall but the OMCs only gave Ghanaians a 26% reduction at the pump and the OMCs and BDCs kept the difference,” he noted.
“And when it was asked why when prices of petroleum products are going up, they are quick to increase the prices but when they are going down they are slow to reduce the prices, the OMCs and BDCs said they are recovering their losses. The sensitivity with which they increase prices is not the same sensitivity with which they decrease prices. OMCs and BDCs are being more driven by profit rather the being sensitive to price changes,” he added.
To him, the petroleum price deregulation policy crafted and implemented by government since 2015, has failed to live up to its purpose and no longer cushions Ghanaians from price increments in finished petroleum products.
He therefore further called for a review of the deregulation policy.
