[ 2014-09-19 ]

BDCs must respect supply agreement - AOMCs
Accra, Sept. 18, GNA – The Association of Oil
Marketing Companies (AOMCs) on Thursday called on
Bulk Distribution Companies (BDC) to respect
supply agreement entered with individual Oil
Marketing Companies (OMCs).
Mr. Kwaku Agyemang-Duah, AOMC Chief Executive
Officer who made the call, also rejected the claim
by BDCs that OMCs were the main cause of fuel
shortage in the country.

“We unequivocally dismiss the statement as
outrageous and request the BDCs to respect the
supply agreement entered with individual OMCs,”
he told the GNA in an interview.

“It is pertinent that all relevant petroleum
service providers and/or stakeholders put their
shoulders to the wheel and redeem the industry to
ensure reliable, sustainable and predictable
supply of fuel to all and sundry.”

He expressed concern that the BDCs kept on
shifting the goal post blaming everybody –
“from government, to banks and now to the OMCs,
leaving themselves”.

Mr Agyemang-Duah who is also the AOMCs Industry
Coordinator explained that OMCs/LPGMs contributed
over GH¢ 800 million annually to the nation’s
coffers in respect of the excise, road levy and
Tema Oil Refinery (TOR) debt levy without PAYE
taxes, by lifting petroleum products from the
depot and distributing nationwide.

He said the industry also offered direct and
indirect employment to over 30,000 people, albeit
with the controlled, regulated and small margins.

Mr Agyemang-duah said the recent paucity of fuel
supply had negatively impacted the volume of
products sold and hence the related outturns for
OMCs to even survive to retain employees on
payroll.

He said he was optimistic that the measures being
put in place by the stakeholders will provide for
reliable supply of products.

On the issue of OMCs/LPGMs being asked to have
“Bank guarantee” prior to lifting products by
BDCs, he said the regulator should not be involved
or drawn into commercial issues involving
petroleum service providers in the spirit of
deregulation but rather should constantly play its
roles of ensuring a level playing field.

The Association aimed at helping direct downstream
policy, legislation and regulation and pursues
research towards the development of the downstream
sector.

The Association also represents the collective
interests of the companies involved in the oil
marketing and petroleum products in Ghana.

It also plays a coordinating role with major
stakeholders including the Ministry of Energy,
Ministry of Finance and Economic Planning, Bank of
Ghana, National Petroleum Authority, Energy
Commission, and Environmental Protection Agency.

Others are Tema Oil Refinery, Revenue Agencies
Governing Board, Ghana Standard Board, Ghana Fire
Service, Ghana R Revenue Authority and Bulk Oil
Storage and Transportation Co. Ltd (BOST).

Source - GNA

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