Senyo Hosi, CEO for Chamber of Bulk Oil Distribution Companies
The Chamber of Bulk Oil Distributors (CBOD) is asking petroleum consumers across the country to be measured in their demand for reduction in fuel prices at the pumps.
This follows calls by the Chamber of Petroleum Consumers (COPEC) requesting for the downward review of fuel prices at the various pumps to reflect the decline in the global crude oil prices.
According to the Chief Executive Officer of the Chamber of Bulk Oil Distributors, there are several factors that go into the calculation of fuel prices before the ex-pump price is reached.
“The OMCs have been selling below market price, which will mean either they or the Bulk Oil Distribution Companies (BDC’s) are giving away a good part of their margin and taking a hi. The truth of the matter is that significantly most Oil Marketing Companies (OMC’s) benchmark their prices to the GOIL prices,” Mr. Hosi said this at press briefing in Accra.
“That is the public truth and I think we have said it in our industry report before that there are several factors that go into the calculation of fuel prices before the ex-pump price is reached. That is why it is easy for you to see Shell, Total and GOIL often around the same price and you find the other ones actually going lower than all these people,” he argued.
Earlier on March 9, oil prices plummeted around 30 percent after Saudi Arabia and Russia slashed its official selling prices and set plans for a dramatic increase in crude production next month, starting a price war even as spread of the coronavirus erodes global demand growth.
Following that, COPEC believes consumers in Ghana should witness between 10-32 percent reductions in fuel prices even though the Oil Marketing Companies (OMCs) have reduced fuel prices by 5 percent.
Recently, GOIL Ghana integrated its operation to reduce its price below the market level to attract customers, forcing other major oil companies to lower their prices to be competitive.
Mr Hosi however says that OMC’s have been taking a hit for a long time, and would need a little space to recover their losses.
Adding that the situation has resulted in OMCs selling below the price estimation of the National Petroleum Authority and the Chamber of Bulk Oil Distributors.
