Market share of top OMCs in Ghana shrinks to 61%

The top 10 Oil Marketing Companies (OMCs) in Ghana saw their market share shrink from 65% in 2022 to 61% in 2023.

This is according to the 2023 Ghana Petroleum Industry Report by the Chamber of Bulk Oil Distributors (CBOD) which signals intensified competition in the sector.

The report also revealed that as many as 34 OMCs faced potential shutdowns in 2023, signaling mounting challenges within the industry as players jostle for survival in a tightening market.

Although the number of Oil Marketing Companies reduced from 235 in 2022 to 201 in 2023, the trend per data from obtained from the Chamber of Bulk Oil Distributors shows that the number of OMCs has increased by about 69% from 2013 to 2023.

The decrease in the number of OMCs in 2023 notwithstanding, the market share of the top 10 OMCs declined from 65% in 2022 to 61% in 2023, indicating the sector is gradually becoming competitive.

State-owned Goil retained its market dominance for the ninth consecutive year, although its share dipped from 20% in 2022 to 16% in 2023.

This decline was primarily driven by reduced diesel and petrol sales, which dropped by 3.5% and 6.5%, respectively.

Meanwhile, Star Oil climbed the ranks, moving from fifth place in 2022 to claim the second spot in 2023. Its market share grew significantly, rising from 2.5% to 8.4%.

Other major players, including Vivo Energy, TotalEnergies, Zen Petroleum, and Puma Energy, experienced a loss in market share during 2023.

Emerging players like Benab, Dukes, Gaso, and Frimps recorded gains with Dukes Petroleum notably displacing Petrosol from the top 10 OMCs.

Goil Plc marketed and retailed over 700,000 mt of refined products in 2023. Star Oil, Vivo Energy, TotalEnergies, and Zen Petroleum marketed over 300,000 metric tons each.

Four other companies marketed 100,000 metric tons – 200,000 metric tons, while Frimps Oil sold below 100,000 metric tons.

On the infrastructure front, the number of retail outlets has seen steady growth, increasing from 3,038 in 2014 to 5,046 in 2023 representing a 66% rise.

However, this expansion has not necessarily translated to higher productivity.

The productivity of retail outlets dropped by 22% in 2020, a trend attributed to reduced consumption during the COVID-19 lockdowns.

Despite these fluctuations, total national consumption of petroleum products rebounded in 2023, rising by 6% from 4.22 million metric tons in 2022 to 4.49 million metric tons.

This increase highlights the resilience and potential for growth within the sector.

The evolving dynamics in Ghana’s OMC landscape signal a market in flux with emerging players gaining ground and established leaders facing mounting pressure to adapt.