The CEO of the Chamber of Oil Marketing Companies (COMAC), Dr Riverson Oppong, has raised concerns about the number of players in Ghana’s downstream petroleum sector, arguing that the market has become overcrowded.

His comments come as government continues to intervene in diesel pricing to cushion consumers from rising international oil prices.

Government has extended the GH¢2-per-litre diesel subsidy for another two months. The latest arrangement shares the cost between government and industry, with GH¢1 coming from a reduction in the D-Levy and another GH¢1 from margins.

The intervention follows renewed pressure from international oil prices. COMAC has projected further increases in fuel prices, with diesel potentially reaching GH¢19.60 per litre in the latest pricing window.

Dr Oppong said the continued government intervention highlights the unfinished business of deregulation in the sector.

“This is an industry where we have pushed for a full price deregulation policy.”

He questioned the extent to which private operators can determine their prices when government continues to influence parts of the pricing structure.

“What is sometimes, I know, the regulation bit, the external hand that tries to come in, because 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.”

According to him, some components of the petroleum price build-up have been deregulated, but government interventions remain.

“But you know, there are aspects of the price-building process today that are not fully deregulated. For sure, I can say that the margins of some components of the SREF are kind of deregulated, but we still have government interventions.”

“That is why the government can say it’s giving subsidies.”

Dr Oppong said government involvement in the sector remains one of the biggest challenges confronting the industry.

“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.”

“That is government intervention.”

He also questioned the need for more Oil Marketing Companies, given the number already operating in the country.

“If you look at the number of players we have in the industry, if anybody today has applied for an oil marketing company’s license, then the person, indeed, for two reasons and I’ll say it unapologetically, that the person either does not understand the business, or is up to something, because what is it that you want to do that the 245 players cannot do?”