Ghana: We Have Not Overpriced Fuel—AOMC Cautions

The Association of Oil Marketing Companies (AOMVs) in the Republic of Ghana has rejected claims by some persons that the oil marketing companies overpriced fuel at the pumps during the first pricing window in January 2023, as reported by some media outlets in the West African nation.

According to the Association, overpricing pertains to regulated markets so for people to perceive overpricing in a deregulated market is ironic.

During the second pricing window in December 2023, petrol was sold at Gh¢13.40 per litre while diesel was sold at Gh¢15.85 per litre.

However, oil marketing companies adjusted pump prices down during the first pricing window in January, with leading OMCs selling petrol at Gh¢12.40 per litre while diesel was sold at Gh¢14.60 per litre.

Despite the reduction in fuel prices, some persons in the industry accused OMCs of overpricing fuel.

In a statement issued by Kwaku Agyeman-Duah, CEO of the Association of Oil Marketing Companies and Industry Coordinator, he said the Association found it very disheartening and a setback that some pseudo and self-acclaimed experts who have been through this journey in the industry continue to malign the OMCs/LPGMCs or use this process to, as a subterfuge, to misinform the public and turn them against the well-meaning OMCs/LPGMCs who are handling their business well.

Though Ghana’s petroleum downstream industry is deregulated, Mr Agyeman-Duah said there is a formula ( Petroleum Price Build-up) that serves as a guide for all Oil and LPG Marketing Companies in determining their ex-pump prices.

Among the guide is the determination of the forex (the relationship between the Cedi and the Dollar).

Mr. Agyeman-Duah said players in the downstream resort to the forex from the Bank of Ghana and not that of the regulator (NPA) as the self-acclaimed experts in the industry would want the general public to believe.

Unhappy about the development, Mr. Agyeman-Duah said the attitude of antagonising the OMCs/LPGMCs in the 21st century is not only primitive but also non-supportive of the toils that the OMCs/LPGMCs bear in the economy.

“Trying to incite the general public against genuine business people is very counter-productive and tantamount to killing the industry, especially without facts,” he said.

He appealed that anyone seeking some education or clarification on the price build-up can contact the offices of their regulator, the National Petroleum Authority (NPA) or the Association of Oil Marketing Companies (AOMC) at any time, and not be misled by unguided statements by certain individuals with truncated objectives.

“Additionally, an educational forum on petroleum pricing would be organised for the general public, and the schedule thereof would be communicated in due course,” the statement ended.

Source: https://energynewsafrica.com