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Business News Tue, 22 May 2018

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OMCs are collapsing because of fuel smuggling - Kwaku Agyemang Duah

The Chairman of the Association of Oil Marketing Companies(AOMC) Mr Kwaku Agyemang Duah has told Accra-based Oman Fm in an interview monitored by MyNewsGH.com that activities of fuel smugglers are crippling their businesses warning that the situation if not curtailed could lead to job losses.

He explained that their members are not able to pay salaries of their staff because sales have gone down drastically due to the sale of fuel on tabletops mainly from smugglers.

“As we speak OMCs can’t pay their staff. Some OMCs haven’t paid their salaries for about three months. Even those who are able to pay salaries only do so at the 15th of the following month,” he said.

Speaking to Oman FM’s Michael Creg Afful, Mr Kwaku Agyemang Duah who expressed worry over the development indicated that ” when our members open the stations they will there and only a few people will come to buy fuel. Those in Accra are even better but when you go to Central and Eastern Region the situation is worse.”

According to him, they have met with the National Security to look at how to address the issue.

He could however not tell what steps are being taken since it borders on security.

Records from the National Petroleum Authority( NPA) indicate that fuel smuggling made the country to lose a colossal $200m in revenues between 2016 and 2017.

According to the head of research at the Authority, Sheila Abiemo, up to 300,000 metric tonnes of fuel used for n the country are not recorded and no taxes paid on them.

The illegal activity which is done through depots mainly in Tema and Takoradi is one of the major challenges affecting the petroleum sector.

The trend is said to be syndicate between black marketers and border officials.

Source: My News GH

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