Association Of Oil Marketing Companies [AOMC] says it is developing training packages which would offer specialized operational training to employees of Oil Marketing Companies [OMCs] and Liquefied Petroleum Gas Marketing Companies [LPGMCs] business on all levels of the organization structure.
Tackling differential zone pricing by Bulk Distribution Companies according to AOMC is long overdue and it believes that either the regulator takes steps to remedy the issue to eliminate it or allow OMCs to price their products differently based on where they purchase them in the realm of deregulation.
The Association, this news portal, has established is also calling for an extension of the 21 days plus 4 days deadline to 30 days or an institution of a “pay as you sell” [PAYS] policy would greatly ensure timely and effective tax compliance by OMCs.
At a media interacting held in Accra, Mr. Agyemang Dua, the Chief Executive Officer of AOMC said peer review and operational audit which includes mystery shopping would be undertaken to bring sanity to the downstream oil sector.
He cited differential zonal pricing, illegal fuel trade, variation of levies by various institutions at will, payment of taxes within 21 days plus 4 days, zonalisation with limited Bulk Distribution Companies at various depots, maintaining a high level of safety at all its outlets and insurance bond as some of the challenges of the AOMC.
On the progress made by AOMC, he said, his outfit had collaborated with the regulator, National Petroleum Authority in formulating the legislation to curb illegal activities such as smuggling and dumping of fuel in the downstream petroleum sector to ensure protection is given to the businesses of legitimate players in the industry.
Commenting on adulterated fuel menace, the Chief Executive Officer of AOMC said, it had work jointly with the regulator to tackle the influx of adulterated fuel into the Ghanaian market. Regarding issues related to tax, Mr. Agyemang Dua stated, AOMC has collaborated with Ghana Revenue Authority [GRA] towards the institution of a better format to handle tax-related issues.
Currently, he adds, the Association is working towards pay as you sell model where the OMCs pay taxes on the volume of product sold by employing automatic tank gauging systems.
The Association according to the Chief Executive Officer of AOMC had also facilitated the institution and implementation of Enterprise Related Database Management System [ERDMS], a platform for downstream industry players to perform transactions conveniently and absolve the OMCs and LPGMCs from other non-employees making orders on their behalf.
Available information indicates that OMCs and LPGMCs investment into the Ghanaian economy stood at over four billion dollars.
The above-mentioned institutions had also created 60,000jobs and over 100,000 indirect jobs including numerous corporate social responsibilities.
The Association of Oil Marketing Companies is an industry association and a private initiative by the oil marketing operators in Ghana since 2003.
It is an advocacy institution established to help direct downstream policy, legislation, regulation and pursue research towards the development of the downstream sector.
Source: Adovor Nutifafa