Modern Ghana logo

FEATURED: Can We Blame Religion For Africa’s Economic Woes?...

body-container-line
13.06.2017 Business & Finance

Downstream Petroleum Market Overcomes Turbulence

Ghanaian Chronicle
Downstream Petroleum Market Overcomes Turbulence

The downstream oil marketing sector picks up gradually in the second quarter of the year, after marginal turbulence in the first quarter, Mr Gyemfi Amanquah, Chief Operating Officer of GOENERGY Company Limited, stated on Monday.

Mr Amanquah told the Ghana News Agency in an interview that trading in the second quarter had started with marginal hinge up, due mainly to the international market price of the product, which was on the decline, as well as the positive trend of the local currency against other currencies.

The GOENERGY Chief Operating Officer explained that oil marketing companies (OMCs) and bulk distributing companies (BDCs) were at their wit’s end during the first quarter, as transaction was bad, and attributed it to the volatility of the local currency, economic shake-up of the new government, and international trading pattern.

He said GOENERGY, which is a subsidiary of the Ghana Oil Company Limited (GOIL), the nation's foremost indigenous OMC, is now the country's major supplier of gasoline, gasoil, marine gasoil, liquefied petroleum gas (LPG), domestic kerosene, and aviation turbine kerosene (JET-A1). “We will continue to ensure stability in the supply of products.”

Mr Amanquah said developments in the second indicated that business in the quarter would bounce back, as there were signs of prices and cedi stabilisation, as well as efforts by stakeholders to combat black market petroleum dealers, which endangered the market.

Mr Amentor Aziakor, Goenergy Operations and Marketing Manager, also noted that GOENERGY would continue to undertake prudent ventures to attract investment, in order to expand the capacity of existing storage infrastructure, and increase the number of depots and storage infrastructure at strategic locations across the country.

He explained that GOENERGY seeks to dominate the sector to protect the national economy from being manipulated by foreign multinationals.

Analysing the BDC sector, Mr Aziakor said increased mining activities, coupled with a vast influx of vehicles and machinery into the country, had improved the demand for petroleum products.

He said the oil field, especially, the Tano Basin, had also boosted exploration activities along the coast of Ghana, thereby, resulting in increased consumption of marine gasoil. “Ghana, therefore, needs an indigenous BDC with capacity to meet demands and eliminate the potential shortage of any products.

“As shortage of any petroleum product at this point in the nation's development agenda will derail the marginal gains and set us backward. In the midst of energy volatility, Ghana cannot add shortage of petroleum products.”

GOENERGY was established in February 2014 as a wholly-owned subsidiary of GOIL, as a BDC to source for and secure the petroleum products requirement of the company.

GOENERGY started operations in September 2014, by securing and supplying petroleum products for the sole use of GOIL, and in May 2015, it extended supplying of products to other OMCs.

GOENERGY, therefore, seeks to establish an active supply infrastructure network and channels that lead to competitive lower cost, and ensure product availability, as well as improvement of quality throughout the supply chain.

Source: GNA

body-container-line