Senyo Hosi, the chief executive officer of the Chamber of Bulk Oil Distributors, claims that Ghanaian users of petroleum do not pay fair rates for the gasoline they use.
He believed that, given all other factors being equal, gas prices at the pump ought to be higher than they are.
He pointed out that those involved in the petroleum supply chain are the ones protecting Ghanaian customers, and he voiced concern that this would soon have terrible repercussions for those involved in the supply chain.
Speaking on JoyNews' PM Express Business Edition, he said that the Oil Marketing Companies and Bulk Distributing Companies have suffered enormous losses in the first half of this year and may do so again if a speedy fix is not found.
"The reality is that we are not paying actual prices since there are a lot more people attempting to speculate and sometimes prices are intended to be adjusted high, but individuals don't do it or they stock up heavily in the hopes that they would recover during the following window.
"In actuality, the BDC subsector and maybe the OMC subsector have both seen a number of significant losses at the end of this specific half-year. When you see the rates that are really on the pump, it might be perplexing at times.
You should not add taxes to exref prices, therefore I occasionally wonder how the oil marketing corporations have been able to make ends meet. And the BDCs will face difficulties if you consider what they have and the market rate, the speaker stated.
According to him, some of these players are attempting to come as near to cash as they can in order to lessen the impact of their losses, which is an unsustainable position.
"So that's what some of them are doing right now, and that's why people are wanting to convert closer to cash; the fx risk or the depreciation provision you put in your exchange rate assumption will become smaller or almost nil as you move closer to cash.
You don't have to use 8.5 as a forward rate; instead, you'll use 8.25 if you negotiate a rate today. You'll get it now, but if you invest it over the following 30 days, it could help make up some of the losses you would have suffered.
The participants are therefore juggling a variety of models. However, from my vantage point, they are not long-term fixes, therefore we would need to put in place systems that would force the market to reflect prices, he added.
There are two outcomes: if the players falter, the entire supply chain will falter as well; likewise, if the supply chain is ineffective, IOT faith in our market will also falter.
As a result, the overall cost will be rather significant for the nation, he continued.
Therefore, we must ensure that there is opportunity for regulation and that our pricing are somewhat more realistic. Regulators, though, find it challenging. "You're glad when prices are lower than they should be because consumers will pay less, but the actors who are required to preserve supply may face difficulties doing so in the long run," he said.