The Chief Executive Officer of PETROSOL Platinum Energy PLC, Michael Bozumbil, has praised Ghana’s petroleum downstream deregulation policy, describing it as the key reason for the country’s fuel supply security and the intense competition in the downstream petroleum sector.
Speaking at the recent Ghana Biennial International Summit and Exhibition (GH-BISE) 2026, organised by the Society of Petroleum Engineers (SPE) in Accra, Mr. Bozumbil said the first phase of the deregulation policy began in the late 1990s and focused on opening the downstream petroleum sector to indigenous private investment.
This led to the licensing of indigenous Oil Marketing Companies (OMCs) to operate in a market that had previously been dominated by foreign-owned OMCs.
According to him, the policy paved the way for the emergence of indigenous OMC brands and encouraged significant investment in retail fuel stations and storage infrastructure by local investors, thereby improving access to petroleum products and strengthening Ghana’s fuel supply security.
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Mr. Bozumbil said the second phase of deregulation came in July 2015 with the liberalisation of prices for petroleum products, particularly petrol, diesel and Liquefied Petroleum Gas (LPG).
He explained that the move largely ended government subsidies on petroleum products and shifted the responsibility of providing affordable fuel from the government to OMCs and Bulk Distribution Companies (BDCs), with competition serving as the primary mechanism for keeping prices low.
He commended successive governments for maintaining the policy, saying consistency in its implementation has strengthened national fuel supply security by eliminating fuel queues, increasing competition and creating opportunities for private sector investment in infrastructure, while also helping to develop indigenous entrepreneurs in Ghana’s oil and gas industry.
Mr. Bozumbil, however, noted that although consumers continue to benefit from relatively low fuel prices due to intense competition among numerous OMCs, many of these companies are heavily indebted because they are forced to significantly reduce their profit margins—or, in some cases, sell at zero or even negative margins—to compete for market share.
He warned that this practice threatens the long-term sustainability of the industry.
He further alleged that some OMCs engage in illicit activities, including tax evasion and fuel adulteration, to sustain their low pricing strategies.
Mr. Bozumbil said these practices, which he indicated are largely associated with some indigenous OMCs, pose a serious threat to the sustainability of the downstream petroleum industry and Ghana’s fuel supply security if they are not addressed.
He commended the National Petroleum Authority (NPA) for its recent decision to enforce floor prices and reintroduce uniform pricing of petroleum products at individual OMC fuel stations.
However, he urged the regulator to take more decisive action against OMCs and BDCs found to be engaging in illicit activities in order to sanitise the industry and safeguard its long-term sustainability.
Mr. Bozumbil also urged the NPA to review the current licensing regime to encourage industry consolidation and ensure that new licences are issued only to companies with the requisite industry experience, proven business management practices and strong financial capacity.
He further challenged leaders of existing OMCs and BDCs to uphold best industry practices, make prudent commercial decisions, comply with regulatory and tax obligations, maintain sound corporate governance and embrace innovation to build sustainable businesses.
His remarks contributed to broader discussions on the growth and long-term sustainability of Ghana’s petroleum and energy industry, particularly the need to balance consumer protection with the financial sustainability of petroleum service providers.
Supporting Mr. Bozumbil’s position, Abass Ibrahim Tasunti, Director of Economic Regulation and Planning at the National Petroleum Authority (NPA), who also served as a panellist at the event, said the Authority remains committed to ensuring a fair pricing regime that benefits both consumers and Oil Marketing Companies (OMCs).
“The NPA remains committed to working closely with OMCs to ensure fair pricing that supports business sustainability while also delivering value to consumers,” he said.
The Ghana Biennial International Summit and Exhibition (GH-BISE 2026), organised by the Society of Petroleum Engineers (SPE) Ghana Section, brought together regulators, policymakers, investors and energy industry leaders to discuss sustainable energy development in Africa.
The summit served as a platform for discussions on energy investment, sustainability, innovation and the future of Africa’s petroleum and energy industry.
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