Fuel sector overcrowded as 245 OMCs compete for market share – COMAC CEO
The CEO of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has raised concerns about the number of players in Ghana’s downstream petroleum sector, arguing that the market has become overcrowded.
Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), has expressed concerns about the crowded market in Ghana's downstream petroleum sector, which now hosts 245 oil marketing companies (OMCs). The government has extended the diesel subsidy for an additional two months, sharing the cost between government and the industry.
Dr. Oppong, in his recent comments, highlighted that deregulation in the sector is still incomplete, despite private operators pushing for a full price deregulation policy. He questioned the extent to which private businesses can determine their prices when government continues to influence the pricing structure. Although some components of the petroleum price build-up have been deregulated, government interventions persist.
Dr. Oppong acknowledged that the margins of certain components of the SREF (Subsidy Refund Entity) are deregulated, but government involvement remains a significant challenge. He also raised doubts about the need for additional OMCs, given the already high number of players in the industry. According to Dr. Oppong, anyone seeking to obtain an oil marketing company license may either lack understanding of the business or have ulterior motives, as the existing 245 players cannot compete effectively.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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