EMG calls on AOMC

Energy Media Group (EMG), publishers of the Energy Ghana (EG) magazine, led by the Chief Executive Officer (CEO), Mr. Henry Teinor has paid a courtesy call on the Association of Oil Marketing Company in Accra.

The visit was to present the quarterly EG magazine and also to inform the association about the upcoming Ghana Energy Awards.

Presenting the magazine on behalf of EMG, Mr. Teinor observed that there is the need for Ghanaians to help build their own businesses to grow. "Many at times we intend helping foreign entities to grow but rather collapse our own companies. This attitude has to stop," he added.

Receiving the magazine on behalf of the association, Mr. Agyemang Duah, the CEO of AOMCs thanked the team for the kind gesture and promised the association's support for the upcoming events.

"We are fully behind you. This award will definitely make a difference as far as the industry is concerned," he added.

Touching on the fuel smuggling within the sector, he pointed out that "it all started with the activities of “BeleBele” stealing fuel and we ignored them because of their insignificant volumes."

"This moved to the adulteration of product which later even went down as low as 2%. This then graduated to dilution of the product which is coordinated by some external bodies," Mr. Duah said this really affected sales of the OMCs and as a result of that they petitioned the then NPA boss for redressed.

“Diversion of export products to the local market has been a big problem for the industry. These tankers are mostly those causing fire outbreaks in the country. Tankers carrying products meant for Togo are diverted to Kumasi. Those the association caught were brought to book and sanctioned,” said Mr. Duah.

He mentioned that mostly Christmas is their season but last year (2016) was bad for them. "Although people are buying the product but those doing illegal activities are selling more than some of us. This is a very serious one and it’s affecting our members heavily."

He mentioned that "fuel attendants are sleeping at almost the various filling stations close to the boarder in the Volta region because there are no customers to buy the fuel for them. Fuel stations which used to sell 9,000litres a day are now struggling to even sell 1,000litres. By data some of us are losing about 30% in revenue sales. If police officers can stand at the port and allow this to happen then we are at risk.”

“Our fears and concerns are about the possible extension of their activities to the Jubilee Oil Field. We have a situation where some of the tanker drivers resorted in selling the product directly to drivers undercover at the various lorry stations on table tops. What this people are doing is a risk business and they can easily cause fire outbreaks,” he noted.

He said “this matter must be treated as a treasonable offence just like what’s seen in other jurisdiction such as the Philippines, where culprits are punished.”

Mr. Duah said some of the tanker drivers also discharge the product in the bush in the northern part of the country. “I have personally followed a particular tanker into the bush where they operate and I was shocked to see chiefs involved in such activities.”

“If the media fails to talk about these illegalities and the group does not see any action from the government, then the association will take decisive action. "We expect the national security to send some military men to where they operates and destroy their activities."

He explained that sometimes the tank drivers transfer fuel products an unregistered track and transfer them into registered ones. This takes place at the Kpone Katamanso area.

According to him, these guys are making a lot of money and they can control this country if we don’t take care.” They can buy bonds, take shares in ECG and make other big investments in the country.”

He pointed out that export issue is not their big concern because they just normally constitute 3 percent of the total petroleum volumes but they end up competing with them on the same market. ECOWAS protocol allows products to be transported to other neighbouring countries and we don’t have problem with that.

“The association members are threatening to stop paying taxes as part of the measures to protest against the happenings, because they believe that some people are made to pay while others go scout free but they compete with them on the same market,” he stated.

SOLUTION

Touching on solutions, Mr. Agyeman Duah mentioned that “the association has briefed the Vice President Dr. Mahamudu Bawumia about this menace and has promised to deal with the issue.”

We have also briefed the Energy Minister, Boakye Agyarko and he has instructed his Deputy Dr. Amin Adam to handle the case before it get out of hand. Dr. Amin Adam has assured the AOMCs that government will administration fees on the export products.

He said Ghana is meeting only 2% of petroleum demand to Bukina Faso but this figure has increased to almost 400 percent. This is happening because of the high taxes on petroleum product.

There is the need for the government to reduce taxes on petroleum products. There is an incentive for such trade because of our high taxes as compared to that of Kenya.

“In July to December 2015, our prices where low and people from Ivory Coast where buying our product from Domaa Ahenkoro, Togo was buying from Sazulugu Tatale and the people of Burkina Faso were also buying from Paga. It’s just simple, let’s just change our policy direction,” he stated.

AWARDS

With regard to the Ghana Energy Awards, I think we must start rewarding companies with safety priorities and incident free companies over a period of time. It must be processed base awards.

“Make sure the winning companies pay taxes and does not involved themselves in any illegal dealings. The association will continue to work with EMG to make sure that the two companies grow together.”

He thanked the team for the visit and subscribed to the magazine.