COMAC CEO warns of overcrowded fuel market as 245 OMCs vie for space

The CEO of the Chamber of Oil Marketing Companies, Dr Riverson Oppong, has warned that Ghana’s downstream petroleum sector is becoming overcrowded with too many players. He said the market cannot accommodate more Oil Marketing Companies when existing ones struggle to survive. Currently, 245 OMCs operate in the country, but new applications keep coming. Oppong questioned why anyone would seek a license when the industry is already saturated. He argued that many applicants either do not understand the business or have hidden motives. The CEO stressed that the sector needs consolidation, not more competition. His comments come as the government extends the diesel subsidy for another two months. The subsidy, now shared between state and industry, reduces the D-Levy by GH¢1 and draws another GH¢1 from operator margins. This intervention aims to shield consumers from rising global oil prices. COMAC projects diesel could hit GH¢19.60 per litre in the next pricing window. Dr Oppong said government involvement in pricing remains a major hurdle to true market freedom. He recalled that the sector has long pushed for full deregulation, but partial interventions persist. Some price components have been deregulated, yet the state still sets ceilings and caps. This mixed approach, he said, undermines the free market principles the industry claims to support. The CEO warned that continued state meddling discourages private investment and distorts pricing. He urged the Finance Ministry to freeze fuel taxes to ease consumer pressure. COMAC also wants the Customs Act’s Section 136 suspended to protect importers. The group insists that windfall gains from crude oil must fund downstream sector support. Without structural reform, he said, fuel prices will keep rising. The current subsidy arrangement reflects temporary relief, not long-term sustainability. As international oil prices fluctuate, Ghana’s fuel market remains vulnerable. The CEO called for urgent deregulation to let private operators set prices without interference. He argued that true market freedom would benefit both businesses and consumers. Without it, the sector will keep facing instability and inefficiency. The Chamber hopes the government listens before further damage occurs.