Cheaper fuel price does not mean bad fuel
National Petroleum Authority on countless occasions debunked the notion that a lower price displayed at Fuel Station does not mean bad fuel.
As Fuel gets closer to 7 cedis a litre, the only way to force prices down is Pricing Competition. Total, Goil and Shell are always the most expensive Station across the country, whiles companies like Star, Allied, Zen Petroleum and Goodness are mostly among the cheapest. They offer Fuel upto 40 pesewas cheaper. This does not mean these companies are selling Adulterated or bad Fuel.
Some of these companies buy cash from the BDCs, have small overheads and are efficient in their operations. The other factor is the Dealer/ Marketers Margin. Since it’s a deregulated market, all OMCs can charge their own margins. In some cases, the Fuel Station is owned by an individual separate from the OMC so he is referred to as a Dealer.
The OMC have to split their margins with the dealer. Goil , Shell and Total have a lot of these dealer Stations in the country. When the OMC owns the Fuel Station, then the same company keeps the dealers margin. The smaller companies who own their own stations can now reduce the fuel because they don’t pay any dealer.
The Pilar of deregulation is Price. We the consumers are supposed to buy more from the OMC offering cheaper fuel so they increase their Volumes. The more products they sell, the more money they make at a reduced price.
These big OMC have hijacked the main road and they are easily seen when driving around. Imagine if a small company like Allied sells at the same price as Shell or Goil, who will ever buy from Allied?? Especially when u have to drive to back roads to find these small OMCs.
Cheaper fuel is a marketing strategy for us to patronize their products. We pay 5 pesewas per litre for Fuel Marking Margin. The fuel marker is to guarantee quality products and check Adulteration.
If you suspect a company has Adulterated their products it’s a crime, report to the police. NPA will shut the Station down. NPA has monitoring teams in all regions making sure we buy the best product on the market.
Let’s encourage smaller companies to offer us good prices to force the big ones to reduce prices. THANKS
