Bawumia’s comment on OMC third-party supplies apt– AOMC

Bawumia’s comment on OMC third-party supplies apt– AOMC

The Association of Oil Marketing Companies (AOMC) has commended Vice President, Dr. Mahamudu Bawumia on his address at the Launch of the National Retail Outlet Fuel Monitoring System which assured players in the Petroleum Downstream Industry of government’s commitment to create the enabling environment for our businesses to thrive.

According to the AOMC, the assurance is timely and welcoming due to the current price wars and the seeming comeback of illegal fuel trading.

The Oil Marketers said the foundation and key objective for forming the Association was to ensure the collective interest of its members and by extension promoting the business of OMCs and LPGMCs operating under the set industry ethics and standards proffered by the National Petroleum Authority and the state.

In statement signed by the Board Chairman of AOMC, Henry Akwaboah and Industry Coordinator, Kwaku Agyemang-Duah, the AOMC said, unauthorized third-party supplies described by the Vice President as “supplies by OMCs in good standing with regulators in favour of heavily indebted OMCs that are determined to evade payment of statutory levies and margins” is worrying.

“This inappropriate behaviour by few OMCs have become an issue of great concern to other marketers who are dutifully complying to the ethics and rules of the industry, diminishing their market share and sales volume.

These disloyal actions further distort industry figures, affects profitability of the already struggling OMC business and negatively affects unfair price wars in the industry.

A recent survey has shown that amongst the countries, Kenya, South Africa, Morocco, Ghana has almost four times the number of retail outlets per square mile as any of the above countries. Also, judging by number of OMCs, Ghana has by far the greatest number per capita. These details also go to buttress the fact that our market is overly saturated and in no time, monthly sales volumes will continue to go downhill” the statement said.

The AOMCs indicated that the industry has become unduly competitive due to inordinate predatory pricing practices by such 3rd party loyalists. As a result, fairness and adherence to industry ethics and standards have gone to the gutters and there is the need to sanitize the operations of OMC business.

“The Association of Oil Marketing Companies (AOMC) cannot support any form of illegality even for its own members and would like to state unreservedly that, it has never supported and shall not support nor back any OMC engaging in any form of third-party supplies. We would like to encourage the government and our regulator to repeal all laws, regulations and rules pertaining to third party supplies as soon as possible.

We would like to however encourage OMCs who are indebted to the NPA, BOST or GRA to approach these institutions to discuss a payment plan for resumption of their business operations and the AOMC will lend its support in this regard.

It is our fervent hope that all OMCs and LPGMCs shall abide by industry ethics and standards in their fuel marketing operations to ensure a level playing field which contributes to the development of our country Ghana” the statement concluded.

 

Source: thebftonline.com

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