The Ghana Oil Company (GOIL) has suspended its membership from the Association of Oil Marketing Companies (AOMC) effective December 8, 2021, following an alleged accusation made by the AOMC.
The decision came after a December 7, 2021, statement from AOMC addressed to the Minister for Energy, Dr. Mathew Opoku Prempeh was circulated, indicating that government has directed GOIL to reduce its fuel prices by 15 pesewas, thus from 6.85 per liter to 6.70 per liter.
The letter addressed to the Minister of Energy also implored the government to withdraw its directive to GOIL and desist from ever interfering in the oil market.
According to GOIL, the decision to reduce its fuel prices was to cushion the ordinary Ghanaian and bring an end to the agitations of transporters adding that at no point did the government direct the company to reduce its fuel prices as being alleged and circulated.
“We at GOIL are therefore surprised that AOMC has found its voice and the audacity to allege that government ‘directed’ GOIL to reduce prices and has gone ahead to ask the government to withdraw that ‘directive’. The Association is fully aware that even at our current prices, most Oil Marketing Companies (OMCs) are selling below the GH¢6.70 per liter currently being sold by GOIL.
The Association is also in knowledge of the nefarious activities of some OMCs which enable them to undercut GOIL and has kept quiet but has instead, sought to unfairly denigrate the management and board of GOIL as being the whipping boys of government.
GOIL wants to state categorically that at no point did the government direct the company to reduce its fuel prices as being alleged and circulated. GOIL is a listed company with a constituted Board of Directors and Management and takes decisions based on prudent commercial principles.
We at GOIL believe the association has shown gross disrespect to the company and treated it with contempt and public ridicule. GOIL has therefore decided to suspend its membership of the association immediately,” a statement from GOIL reads in part.
GOIL noted that prior to the 15 pesewas per liter reduction, it had in the previous window, reduced its price from GH¢6.99 to GH¢6.85 per liter of fuel for both super and diesel, thereby losing 14 pesewas per liter to cushion Ghanaians in the difficult post-COVID period.
It further stated that the current agitations of transporters and the concerns of Ghanaians led the company to sacrifice part of then its margins to benefit its cherished customers and Ghanaians adding that the previous window which saw to a 14 pesewas reduction was not influenced by a directive from the government but taking into considerations all necessary steps needed to safeguard its business interest.
Meanwhile, GOIL has challenged the AOMC to provide proof other than the unproven media claims that the company was directed to reduce prices.
“GOIL is therefore challenging the Association to provide proof other than the unproven media claims that the company was directed to reduce prices,” the statement added.
GOIL noted that it finds it strange and unacceptable that the chairman of the AOMC did not “find it fit to seek GOIL’s position before coming out with the well-circulated statement even when the association had earlier advertised for a board meeting,” to discuss the same issues, and GOIL’s group CEO/MD had earlier spoken to the CEO of AOMC.