The Association of Oil Marketing Companies says the constant hike in the price of fuel on the global market is taking a toll on their businesses.
Speaking to Citi Business News, CEO of the Association of Oil Marketing Companies, Kwaku Agyemang Dua stated that the development has compelled OMCs to reduce their margins to stay competitive; a development he says hasn’t been in their best interest.
“Basically, it makes it very difficult for us to redeem our full margin. The margin includes the cost of our return on investment and some project description. We’re unable to sell at the price that we’re supposed to sell again.”
He added that “this is certainly not good for us at all. And this is the first time this is happening in the last seven years. This is the highest kind of rate of increment we’ve all witnessed, so it’s not fine with us, It’s pretty difficult.”
Fuel prices started the year at about 75 dollars per barrel, but are currently hovering around the 95 dollar mark, representing an over 25 percent increase.
Locally, this has resulted in sporadic increases in prices at the pumps.
After starting the year at about GH¢6.5, some Oil Marketing Companies like Total are currently selling at a pesewa less than GH¢8.