President of the Association of Oil Marketing Companies (AOMC), Kweku Agyeman Duah has expressed worry over some OMCs evading taxes in the country.
Speaking on the state of the oil marketing industry in the country, he stated that because prosecution does not take place after the offenders are identified, resolving the situation has become very difficult.
“If we continue to do that with no prosecution, people will start to think that there’s no law here and also learn.”
Mr Agyeman Duah
He further stated that if the National Petroleum Authority (NPA) or the Association gets prosecutorial powers, it will help clean up the industry.
This comes on the back of the Ghana Revenue Authority Debt Management and Enforcement Unit resuming its debt distress action to recoup accumulated petroleum taxes from some Oil Marketing Companies.
Giving the state of the industry, he said although it has been tough especially during the pandemic, his outfit is working to get to the grips of the issue.
“It has been challenging more than ever. It’s been more challenging in terms of operations.”
Mr Agyeman Duah
He indicated that the initial stages of the pandemic had a great toll on the petroleum industry. This, he explained, was due to the lockdown measures which saw most working from home and not purchasing fuel.
According to Mr. Agyeman Duah the petroleum sector has picked up in terms of consumption of fuel by consumers.
“I think the volumes as at now, we are recording about 350 million litres per month. Compared to the pre pandemic era, we were recording 176 [million] litres. We have picked up.”
Mr Agyeman Duah
OMCs can only touch margin prices
Touching on pricing of the petroleum products for consumers, Mr Agyeman Duah revealed that the only factor the OMCs deal with is the price margin. He said aside the margins, all other factors are fixed and cannot be changed.
“In a deregulated system like ours, you have to fix your margin in such a way that you can become competitive. And it is the only variable that you can touch. The rest of them you can’t touch because when you touch and you don’t pay all the taxes, you are in trouble.”
Mr Agyeman Duah
He also posited that the AOMC is working hard to prevent just any oil company to enter the industry and use their institution to carry out just any activity.
“People are doing all sort of things. So, we want to make sure that we alienate all these sorts of things. We want to reinforce the people who are doing good,;their efforts, so that the business will be fair to them.”
Mr Agyeman Duah
Touching on the requirements for the companies who want to enter the industry,;he averred that they have already made some entry level requirements. He then suggested a clean up to be done among the OMCs like it has been done in the banking sector.
Mr. Agyeman Duah further disclosed that a new regulation will be available for the association to use by the beginning of June. This, he indicated, will help the association re-strategize its operations.
“Yes, we are at cross roads. It’s just like human beings, it gets to a point where you have to change your tactics.”
Mr Agyeman Duah
