Plan to make BEST sole aggregator of Sentuo Oil Refinery will create market challenges — CBOD laments

The Ghana Chamber of Bulk Oil Distributors (CBOD) has expressed dismay at government plans that would see the Bulk Oil Storage and Transportation Company (BEST) as the sole aggregator of output from the newly established Sentuo Oil Refinery Limited.

In a statement dated April 25, CBOD said the proposal is "inconsistent with the deregulation policy that guides the activities of the petroleum downstream sector."

CBOD believes the plan will create "market challenges and deficiencies, which will in the medium- to long-term, inevitably cripple the downstream sector."

CBOD CEO Dr. Patrick Kwaku Ofori said: "This policy proposal not only contradicts government's mantra of fostering private sector involvement in the industry, but also undermines the petroleum deregulation policy efforts, which are working perfectly."

He added: "By sidelining Bulk Oil Import, Distribution and Export Companies (BIDECs), the government risks stifling competition and hindering the growth of a vibrant private sector within this essential industry."

CBOD argues the proposal risks creating a "monopolistic market which will negatively impact the downstream sector and the fuel-consuming public at large."

It notes that BEST already controls nearly 50% of the market through the gold-for-oil programme, and Sentuo's output represents 20% of domestic needs.

The association is urging government to reconsider and establish an open framework that encourages participation from BEST, BIDECs and other private stakeholders in the downstream oil sector.