Goil, Vivo-Energy, Total are most expensive fuel in Ghana - Report

It has emerged that between May and July 2017 some three top Oil Marketing Companies (OMCs) in Ghana namely Goil, Vivo Energy-Shell and Total sold their fuel at higher prices as compared to other OMCs in the country.

According to a recent report released by the Chamber of Bulk Oil Distributors (CBOD), despite the increase in the fuel prices at the pump, these companies still increased their market shares from 43.28% in 2016 to 45.09% in 2017.

“The top three OMCs (Goil, Vivo Energy-Shell and Total) displayed the highest pump prices among the top 10 for the period under review.”

CBOD in the report ascribed the increase in market share to the “quality of service” exhibited at the pump of Goil, Vivo Energy-Shell and Total.

“Their market share in 2017 increased from 43.28% to 45.09%. This suggests that consumer purchase decisions are increasingly being inspired by the quality of service and other factors and not just price,” the statement stated.

CBOD further observed that within the first trimester the OMCs had clear disparities in the pump prices for gasoline and gasoil but added that should the pattern continue it “may be unfavorable to the effective and efficient competition in the market in the foreseeable future since these three continue to dominate the market.”

Illegal fuel imports hurting BDCs

Meanwhile, CBOD in the report complained that illegal fuel imports into Ghana adversely affected the Bulk Distribution Companies (BDCs) over the period.

The Chamber argued that such acts created unhealthy competition in the industry and threaten the ability of BDCs to honour their financial obligations to their suppliers and banks.