Dr Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), said on Tuesday that the downstream petroleum sector in Ghana has become overcrowded with 245 oil marketing companies (OMCs) fighting for market share.
He voiced concerns that the proliferation of players is undermining the industry’s efficiency and that further deregulation is urgently needed to allow private operators to set prices without government interference.
Meanwhile, the government has extended the GH¢2‑per‑litre diesel subsidy for another two months, a cost‑sharing scheme that cuts the D‑Levy by GH¢1 and reduces margins by GH¢1. The move comes as international oil prices rise and COMAC projects diesel could reach GH¢19.60 per litre in the next pricing window.
Oppong said the continued subsidy highlights the unfinished business of deregulation. "This is an industry where we have pushed for a full price deregulation policy," he remarked. "If I’m a private business, I borrow money to run the business. Who is going to determine what I charge for my good, a ceiling, a cap and all those things because we are a free market economy.”
He added that although some price‑building components have been deregulated, government interventions remain significant. "There are aspects of the price‑building process today that are not fully deregulated… we still have government interventions," he said. "I’m also tempted to say that we do have too much government interference, and for me, ever since I took this position, it’s been one of the biggest challenges to deal with.”
Oppong also questioned the need for more OMCs, arguing that new entrants either lack understanding of the business or have ulterior motives. "If anybody today has applied for an oil marketing company’s license, then the person either does not understand the business, or is up to something," he said.
As the government continues to cushion consumers from rising fuel costs, the debate over deregulation and market saturation is likely to intensify in the coming months.
