Scores of Oil Marketing Companies (OMCs) commended GOEnergy Company Limited (GOEnergy) subsidiary of Ghana Oil Company Limited (GOIL) for pitching against corporate dictators in the downstream petroleum, which has resulted in stability of fuel prices.
The OMCs told the Ghana News Agency in an interview on the performance of the Oil Marketing Companies 62 years after independence that, that greatest thing to happen to the sector was the setting up of GOEnergy which disarmed the Bulk Distributor cartel which normally created artificial shortages in the retail of fuel products.
Since September 2014, GOEnergy’s strategic measures and control of the Bulk Distribution sector had totally eliminated the usual artificial shortages of petroleum products in the country, a source who is a member of the Association of Oil Marketing Companies told the GNA on condition of anonymity.
Commenting on the progressive development of GOEnergy, Mr Gymafi Amanquah, Chief Operating Officer told the GNA that the company’s objective was to continue to maintain dominance and increase its market share in order to save Ghanaians from unnecessary and artificial fuel shortages which was the order of the day in the past.
He explained that GOEnergy was born to offer solutions; recounting that in the beginning of the third quarter of 2013, the nation witnessed series of fuel supply shortages which persisted till the first quarter of 2014.
Mr Amanquah explained that most Bulk Distribution Companies (BDCs) at the time resorted to selling on cash basis, “almost all the BDCs withdrew credit and demanded cash payment for products from OMCs including GOIL.
“However, the BDCs who were willing to trade with GOIL on credit, could not guarantee uninterrupted supplies. This new model of cash transactions for products put a heavy toll on GOIL’s finances”.
He said in order for GOIL business to survive and to ensure regular supply of fuel products to the public, there was the need to secure a continuous supply of petroleum products to feed GOIL’s numerous retail service outlets and meet existing contractual agreement with her consumer businesses.
The Board of Directors and Management of GOIL took a pragmatic action by setting up GOEnergy Company Limited in February 2014 as BDC and a wholly-owned subsidiary of GOIL.