Dublin Core
Title
Assessing the Influence of Petroleum Pricing and Deregulation on Ghana’s Downstream: A Case Study of Selected OMCS and BDCS
Creator
Osafo-Adjei Martin Jnr.
Description
The price liberalization of petroleum products was considered a good policy direction years ago, but it seems to be losing its relevance today. Thus, the study assessed the influence of petroleum pricing and deregulation on Ghana’s downstream in current times. The specific objectives of this study were to; examine the current nature of Ghana’s petroleum retail price deregulation policy in the downstream sector; assess the current overall implications of petroleum price deregulation on OMCs and BDCs in Ghana and explore profitable business operations adopted by OMCs and BDCs after post deregulation.
The study employs descriptive methods research design. The research approach used mixed research which employs both quantitative and qualitative approaches. The study population is made up of 116 Oil Marketing Companies (OMCs) and 33 Bulk Distribution Companies (BDCs) which sums the study population to 149 companies. In determining the sample size for administering the questionnaire confidence level of 95% with a margin of error of 5% of the population was calculated to result in 108 respondents representing the population. The sample size for the interview was 3 respondents as officials from the National Petroleum Authority, Association of Oil Marketing Companies and the Ministry of Energy were interviewed. Thus, the total sample for the study was 111 respondents.
The study concludes that the current nature of Ghana's petroleum retail price deregulation policy in the downstream sector is more centered on taxation and revenue generation for the country. Also, the implications of price deregulation policy on OMCs and BDCs are increased market competition, improved services, increased cost of operations, reduced profit margins, customer complaints about prices, no shortages of petroleum products, inability to generate
adequate funds, political interference, more taxes, stricter monitoring, and boost of economic recovery. Further, the study concludes that the profitable business operations OMCs and BDCs have adopted are buying cheaper products on the market, buying, and selling quality petroleum products, providing additional services to clients, advertisement, and promotions.
The study employs descriptive methods research design. The research approach used mixed research which employs both quantitative and qualitative approaches. The study population is made up of 116 Oil Marketing Companies (OMCs) and 33 Bulk Distribution Companies (BDCs) which sums the study population to 149 companies. In determining the sample size for administering the questionnaire confidence level of 95% with a margin of error of 5% of the population was calculated to result in 108 respondents representing the population. The sample size for the interview was 3 respondents as officials from the National Petroleum Authority, Association of Oil Marketing Companies and the Ministry of Energy were interviewed. Thus, the total sample for the study was 111 respondents.
The study concludes that the current nature of Ghana's petroleum retail price deregulation policy in the downstream sector is more centered on taxation and revenue generation for the country. Also, the implications of price deregulation policy on OMCs and BDCs are increased market competition, improved services, increased cost of operations, reduced profit margins, customer complaints about prices, no shortages of petroleum products, inability to generate
adequate funds, political interference, more taxes, stricter monitoring, and boost of economic recovery. Further, the study concludes that the profitable business operations OMCs and BDCs have adopted are buying cheaper products on the market, buying, and selling quality petroleum products, providing additional services to clients, advertisement, and promotions.
Subject
MBA. Petroleum Economics and Finance
Publisher
Ghana Communication Technology University Library
Date
September, 2020
Contributor
Riverson Oppong, (Phd)