The CEO of the Association of Oil Marketing Companies (AOMCs), Dr Riverson Oppong, has called on underperforming Oil Marketing Companies (OMCs) to consider merging with stronger players to create a more sustainable industry.
Speaking on Joy News’ PM Express Business Edition, he stressed the need for dialogue among industry stakeholders to address inefficiencies.
“A high flyer, a well-doing oil marketing company, needs to buy into the idea that they can have 5% shares in another by giving their company and outlets to that company,” he suggested.
Dr. Oppong believes such collaborations could streamline operations and improve profitability for struggling OMCs.
He criticized the reluctance of some companies to consider mergers.
“Everybody wants to become an MD. Everybody wants to drive a Land Cruiser,” he said, lamenting the culture of individualism in the industry.
Dr Oppong shared an example from the global oil market: “If Exxon and Mobil had to merge to form ExxonMobil, becoming the world’s superpower, what stops us as Ghanaians?” he asked.
He announced plans to organise a downstream dialogue in the first quarter of next year, where CEOs and MDs of OMCs can discuss potential collaborations.
“This dialogue is going to be a meeting where we run the numbers and face facts,” he said, highlighting the importance of data-driven decisions.
Dr. Oppong concluded by urging non-performing companies to seek partnerships rather than struggle independently.
“Let’s come together and move forward. That should be the way to go,” he stated.
The AOMC boss has also expressed deep concern over the rampant corruption in Ghana’s oil marketing industry.
The oil marketing sector in Ghana is under a siege of its own making, according to Dr Riverson Oppong.
“There are so many regulations in the system, but still, the system is corrupt because the number is too much,” he said.
Dr Oppong believes the influx of OMCs has created a chaotic environment that makes it nearly impossible for regulators to maintain control.
He pointed out the unsettling trend of non-compliance, with some companies undercutting prices and selling lower quantitytities of fuel than advertised.
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