GOIL suspends AOMC membership over allege gov’t meddling in price reduction

Ghana Oil Company Limited (GOIL), a state-owned oil marketing company has announced the suspension of its membership from the Association of Oil Marketing Companies over allegations its recent price reduction was influenced by the government.

A statement from the company sighted by GhanaPlus.com said the allegations by the AOMC’s were unfounded, baseless and disrespectful, it has therefore suspended it membership from the organization.

The statement signed by the Group Chief Executive Officer and Managing Director Kwame Osei Preprah said they recognized Ghanaians are the majority shareholders of the entity  hence the decision to reduce it prices to cushion Ghanaians in this difficult times and not because of government influence.

““GOIL wants to state categorically that at no point did the government ‘direct’ the company to reduce its fuel prices as being alleged by circulated. GOIL is a listed company with a constituted Board of Directors and Management and takes decisions based on prudent commercial principles”,

To the uninformed, AOMC should be reminded Government of Ghana, SNNIT and BOST  have in total 78 percent shares in GOIL. All these entities are largely owned by Ghanaians and as indicated earlier Goil pricing policy takes into consideration the welfare of the ordinary Ghanaian. Profit is therefore not the company’s prime motive we also take cognizance of our corporate social responsibilities  to Ghanaians

“………….The allegation that government is interfering in the industry is unfounded and baseless. Ghana Oil Company Limited has the right as any other OMC to determine its prices.“We at GOIL believe the association has shown gross disrespect to the company and treated it with contempt and public ridicule. GOIL has therefore decided to suspend its membership of the association immediately,” the statement said.

Goil chastise AOMC, demand proof of allege government interference in its recent price reduction

It chastised the AOMC for not doing due diligent before asking government to withdraw its suppose directive to the company over the price reduction and challenge it to provide proof, government was behind it.

“We at GOIL are surprised AOMC has found its voice and the audacity to allege that government ‘directed’ us to reduce prices and has gone ahead to ask government to withdraw that ‘directive’. The Association if fully aware that even at our current prices, most Oil Marketing Companies, OMC’s are selling below the 6.70 liter currently being sold by GOIL.
The association is also in knowledge of the nefarious activities of some OMC’s which enable them to undercut GOIL and has kept quiet but has instead sought to unfairly denigrate management and Board of GOIL as being the whipping boys of government,” the statement further reads.

The Ghanaian owned oil marketing company on Monday following a a sit down strike by some drivers unions over high cost of petroleum products in the country announced a 15pesewa reduction in its products.

The decision it said was to cushion Ghanaians who are majority shareholders of the company.

NEW FUEL PRICES EFFECTIVE TUESDAY 7TH DECEMBER , 2021 AT 6AM PROMPT.

SUPER XP – Ghc 6.700
DIESEL XP – Ghc 6.700 pic.twitter.com/JbWQe3J157

— GOIL (@GOIL_Official) December 7, 2021

The decision, however did not go down oil with the Association of  Oil Marketing Company which accuse government of interference and warn them to stay off the activities of the company.

They also asked government to redraw its directive for the reductive of the prices.

Source: GhanaPlus.com