OMCs project marginal drop in fuel prices

 Oil Marketing Compa­nies (OMCs) are pro­jecting some marginal reduction in fuel prices from this month if the Ghana cedi remains stable against the US dollar.

The Chief Executive of the Association of Oil Market­ing Companies, Dr Riverson Oppong, in an interview on Joy News in Accra yesterday stat­ed that, “All the variables that influence prices of petroleum products have been fairly stable over the past week and if that is sustained going forward, then there should be a reduction in prices at the pumps.”

Mr Oppong, however, pointed out that the Cedi’s performance would be a “major push factor when it comes to reviewing prices from September 16, 2024, by the various oil marketing companies.”

He refuted criticisms that OMCs do not quickly adjust prices when the variables indicate a price reduction.

“There is always a reason, why the OMCs delay in reviewing prices at the pumps, and that has nothing to do with the arguments that they want to shortchange consumers,” he indicated.

Some OMCs earlier this month started reviewing prices at the pumps mainly influenced by the cedi’s stability and a decrease in prices of crude oil on the international market.

Dr Oppong rejected the ar­guments that some of the OMCs collude to fix the prices of petro­leum products.

“The Market is very com­petitive and it might be difficult for any operator to collude with another player. OMCs have little influence on the prices, this is because we take the price from Bulk Oil Distributors based on price. We factor the various levies and taxes and then our margins,” he said.

“Our cost inputs are very high and margins are small and most of our members are struggling to break even and that is a fact,” he added.

Dr Oppong revealed that the association was working to deal with complaints of service quality issues that have come up in recent times from some consumers.

“Our sector can be de­scribed as the most regulated in the industry. We are regulated by the National Petroleum Au­thority and Ghana Standards Authority. You shouldn’t see some of these product quality issues coming up that often,” he revealed.

Moreover, he disclosed that the association was embarking on its initiative, to ensure that members comply with the highest standards in storing products at the various service stations.

This, he believes, could go a long way to deal with the challenge and reduce the com­plaints from consumers.

He said, “Looking at the progress that we have made when it comes to developing the sector, we should not be having these kinds of chal­lenges. They are committed to doing everything to ensure that help restore confidence in the industry when it comes to quality of products sold.”

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