The fuel deregulation policy introduced by government which has led to competition among Oil Marketing Companies (OMCs) over prices has saved consumers over GH¢150 million.

Senyo Hosi, Chief Executive Officer (CEO) of the Ghana Chamber of Bulk Oil Distributors (BDCs), who disclosed this at the maiden Ghana International Petroleum Conference in Accra recently, said the deregulation policy has so far been successful in terms of pricing, competition, fiscal benefits and service to consumers.

He said prices of petroleum products have remained low since the regulated pricing regime began, stating “If the National Petroleum Authority (NPA) was still regulating the prices, consumers would have paid GH¢150 million by now.”

Mr. Hosi added that government for the first time in five years has become a net revenue earner from the industry.

“Great as it may be, operators are struggling to survive as a result of the legacy challenges from the regulated pricing regime.

“The weight of legacy subsidies yet to be paid has strained BDCs ability to access funding to compete and sustain operations effectively. The compounding burden of interest expenses has reached unsustainable levels for our survival,” he said.

Mr. Hosi commended government for being supportive of their business but urged it to resolve their problems as soon as possible.

“We trust we can count on the government’s ongoing initiative with the Ministry of Finance, Petroleum, NPA and the banking sector to resolve this problem,” he said.

Mr. Hosi appealed for fairness in the administration and implementation of policies governing forex supply, privileged margins, zonalisation and the use of industry infrastructure, among others.

He said the downstream sector makes very huge investments in the industry and employs tens of thousands.

In view of that when discriminatory policies and actions become rife, investor confidence dampens, and the deregulation policy has created a need for Forex risk management tools, he said.

“We believe that the size of the industry and the complications in its trade presents the nation with a unique opportunity to grow its derivative and secondary financial markets.

“It is our hope that the Bank of Ghana will take policy actions that will encourage the development of an active derivative market,” Mr. Hosi said.

Themed: ‘The Changing phase of Petroleum, repositioning industry,’ GhipCon is an annual mid and downstream petroleum platform for industry education, policy construction, review and modification to drive industry momentum for growth and development.