Ghana’s leading Oil Marketing Companies (OMCs) are grappling with a significant drop in sales volumes, according to recent data from the National Petroleum Authority (NPA). This decline is putting pressure on fuel station dealers’ profitability and sustainability.
GOIL PLC, Total Energies Ghana Limited, and VIVO Ghana (SHELL) have all experienced reductions in their petrol and diesel sales between January and August 2024. GOIL saw the largest decline at 6%, while Total Energies and VIVO experienced drops of 3% and 4% respectively.
The sales slump has directly impacted dealers’ revenues. For instance, GOIL dealers who were earning between GHC23,000 and GHC38,000 in January saw their earnings fall to between GHC21,000 and GHC36,000 by August. Similar declines were observed for dealers associated with Total Energies and VIVO.
Dealers are finding it increasingly challenging to cover rising costs, including utilities, wages, and loan interest payments. Some report barely breaking even, with the most severely affected earning as little as GHC6,000 per month.
A release by the Center for Environmental Management and Sustainable Energy (CEMSE) suggests that pricing strategies are crucial in this competitive market, highlighting that OMCs may need to adjust their pricing strategies and offer higher margins to dealers to remain competitive and retain their dealer networks
Find below the statement
SALES VOLUMES AND DEALERS PROFITABILITY IN GHANA’S PETROLEUM DOWNSTREAM -CEMSE2
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