- Oil Marketing Companies have revealed they will increase the price of petroleum products by 14%
- The decision comes after the NPA announced a 3 pesewas increase in the margin alloted to BOST
- The (BDC) ex-refinery price was also recently increased between 22 and 25%
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Oil Marketing Companies (OMCs) in Ghana has indicated plans of increasing petroleum prices by 14%.
Information available shows that the decision was fueled by the recent increase in the margin allotted to Bulk Oil Storage and Transport (BOST).
According to the OMCs, they stated that it was also due to the increase in the ex-refinery price.
The National Petroleum Authority (NPA) recently announced a 3 pesewas increase in the margin allotted to BOST.
The NPA revealed that the increase was communicated to them by Cabinet via the Ministry of Energy.
The Bulk Distribution Company (BDC) ex-refinery price was also recently increased between 22 and 25%, thebftonline.com reports.
The Chairman of the association of OMCs, Kwaku Agyemang Duah, explained that petroleum prices are also being controlled due to competition among the 116 OMCs operating in the country, which are mindful of the decrease in volumes anytime there is a price increase.
“There is a lot of stress on OMCs as they are not happy with the continuous decrease in volumes as a result of increment in prices, as players in the sector lose approximately 6 percent in volume per every one pesewa increase. OMCs will do everything and anything to get the volumes, and so if volumes are going down it is worry,” Agyemang Duah noted..
In other news, the price of oil has increased beyond $40 for the first time in three months.
This comes after it fell by over 30% and was considered as the worst drop since the Second Gulf War.
Information available shows that Brent crude rose to $40.12 a barrel amid reports that OPEC+ members are calling for an extension of production cuts currently set to end in June 2020.
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