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Immediately withdraw your directive to Goil; it’s dangerous and unfortunate — OMCs to government

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Government has provoked Oil Marketing Companies (OMCs) following its directive to Ghana Oil Company (GOIL) to reduce fuel prices by 15pesewas.

The 175 OMCs are asking government to immediately withdraw the directive to Goil and desists from ever interfering in the market in one way or the other if the current pricing regime, deregulation will succeed.

They said government cannot be a player and referee in a field that allows industries to operate business more freely, make decisions efficiently and remove corporate restrictions.

Their bitter indignation at having been treated unfairly follows President Akufo-Addo’s directive to the GOIL to reduce the price of fuel at the pumps effective Tuesday, December 7.

This was after government held a meeting with transport operators at the Presidency on Monday evening when the latter embarked on a sit-down strike in the morning.

The drivers had protested the escalating fuel prices in the country.

The letter signed by the Chief Executive Officer of the Association of Oil Marketing Companies (AOMCs) Kwaku Agyemang-Duah and addressed to the Minister of Energy noted that the cumulative effects of government’s actions are threatening the survival of OMCs/LPGMCs in the industry, with loss of jobs for the teeming masses being employed, accumulation of debts/levies and their eventual demise.

It is worthy to note that, by this singular purported action of government, it is not only distorting the market for the other One Hundred and Seventy-Five (175) private OMCs/LPGMCs, government is thus acting as both a player and a referee.

The letter intercepted by ModernGhana News noted that the directive to Goil, a major downstream player to reduce its ex-pump prices of fuel in a supposed level playing field is dangerous and unfortunate.

“Our attention has been drawn by the various media publications to the effect that, at the back of Government’s meeting with the various Drivers’ Union on their Strike action on 6th December 2021. The State who is a major shareholder of Goil, has directed Goil, a major downstream player to reduce its ex-pump prices of fuel. If the foregoing is true, it is indeed, unfortunate, dangerous as well as stressful especially given the current Deregulation regime,” it stated.

It added that ‘compelling’ Goil to reduce its fuel prices will consequently not make the company efficient and end up as another ‘TOR spectacle.’

“The cumulative effects are threatening the survival of OMCs/LPGMCs in the industry, with loss of jobs for the teeming masses being employed, accumulation of debts/levies and their eventual demise.

“We of the Association of Oil Marketing Companies (AOMC) on behalf of silent majority of One Hundred and Seventy-Five (175) OMCs /LPGMCs hereby request that: Government withdraws the directive to Goil and desists from ever interfering in the market in one way or the other if the Deregulation regime is to succeed. Secondly, if Government thinks that the foregoing (deregulation regime) cannot be adhered to, we must, as a matter of urgency, halt the Deregulation process and revert to the regulation regime.”

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