The Chamber of Petroleum Consumers-Ghana (COPEC) has advised the Government to reduce the yearly licensing fees paid by the Oil Marketing Companies (OMCs) and the Bulk Oil Distribution Companies (BDCs).
The organization believes that such a move will stabilize petroleum prices and ultimately benefit the consumer.
Speaking to Sefa Danquah on the ‘Epa Hoa Daben’ show, Head of Research at COPEC, Benjamin Nsiah explained: “The OMCs and BDCs have license fee they pay yearly. But the COVID-19 has impacted their market. Some are not able to import. But whether they import or not, they have workers that they must pay.
The Government can reduce the amount they pay based on the impact of the COVID-19 pandemic. If they are paying 300,000 Ghana Cedis, that amount can be reduced to say 150,000 Ghana Cedis. This can help them cut down their cost and share their profits with the consumer.
But if that is not the case these BDCs and OMCs will transfer the cost to the consumer”.
Benjamin furthered that if the Government really wants to show that it has the consumer’s interest at heart, it will “reduce these prices to help to reduce the margin that the BDCs and OMCs put on their prices for the benefit of the consumer”.
The Chamber of Petroleum Consumers-Ghana (COPEC-Ghana) has predicted that prices of fuel is likely to go up due to increased price on the world market.
The recent hike between 10pesewas and 16 pesewas is expected to hit the pumps of Major Oil Marketing Companies (OMCs) by the second to third week of February 2021.
By: Alberta Dorcas N D Armah
