K.T. Hammond Chides OMCs, BDCs For Making ‘unnecessary profits’ From Fuel Price Hikes
A member of the Mines and Energy Committee of Parliament, K.T. Hammond, has blamed the Bulk Oil Distribution Companies (BDCs) and the Oil Marketing Companies (OMCs) for contributing to the pervasive hike in fuel prices.
Mr Hammond, also the Member of Parliament for Adansi-Asokwa, said that in as much as prices of petroleum products may be high on the international market, firms within the value chain are taking advantage of the exchange rate to outrageously price their products.
Speaking to journalists on October 3, K.T. Hammond urged the government to probe the activities of such firms to help tackle the escalation of the prices.
“It’s the Oil Marketing Companies, the big ones, the BDCs that I have a problem [with], so they better sort it out. I am sure the Ministry of Finance, the government, and the Ministry of Energy obviously are looking into this.”
“I am concerned that the Oil Marketing Companies are making unnecessary profits; I think we should be careful how they are also playing the market…The [oil] companies must be cautious how things play out,” Mr Hammond said.
Mr Hammond’s comment comes after another increment in fuel prices on Tuesday, with petrol selling at about GH¢18 per litre and diesel retailing at over GH¢23 a litre.
In a related development, the former Chief Executive Officer of the Volta River Authority(VRA) and chief policy analyst at the Ghana Institute of Public Policy Options, Dr Charles Wereko-Brobbey, has charged the National Petroleum Authority to take absolute control of the oil marketing companies in Ghana.
According to him, the major function of the National Petroleum Authority (NPA) is to regulate the petroleum industry and ensure that consumers are treated fairly.
The continuous increment of fuel prices has become a major challenge to the public, especially motorists. The increment in fuel prices tends to affect almost every aspect of life and scales up prices.
According to Dr Brobbey, “if the NPA cannot fulfil its cardinal role, then the authority should be dissolved”.
He again lamented that the NPA had relayed its primary function to the Chamber of Petroleum Consumers (COPEC).
“The major function of COPEC is to represent the interest of consumers, and that looks similar to that of the function of the NPA, but the Authority has the upper hand in regulating consumers’ interests,” Mr Wereko-Brobbey said on November 2.