MARKET SHARE SQUEEZE: GHANA'S TOP OMCs DROP TO 61%

The market share of Ghana's top 10 Oil Marketing Companies (OMCs) declined from 65% in 2022 to 61% in 2023, according to the 2023 Ghana Petroleum Industry Report by the Chamber of Bulk Oil Distributors (CBOD). This shift highlights growing competition within the sector.

The report also indicated that up to 34 OMCs faced the risk of closure in 2023, reflecting the mounting pressures and fierce competition in an increasingly challenging market environment.

While the number of OMCs decreased from 235 in 2022 to 201 in 2023, data from the CBOD shows that the industry has experienced a significant expansion, with the total number of OMCs growing by approximately 69% between 2013 and 2023.

Despite the reduction in the number of OMCs in 2023, the top 10 companies saw their collective market share shrink from 65% in 2022 to 61% in 2023, signaling increased competition within the sector.

State-owned Goil maintained its market leadership for the ninth consecutive year, though its market share declined from 20% in 2022 to 16% in 2023. This drop was largely attributed to a decrease in diesel and petrol sales, which fell by 3.5% and 6.5%, respectively.

In contrast, Star Oil made significant gains, rising from fifth place in 2022 to secure the second spot in 2023. Its market share surged from 2.5% to 8.4%, marking a notable achievement in a competitive landscape.

Several major players, including Vivo Energy, TotalEnergies, Zen Petroleum, and Puma Energy, experienced a decline in market share in 2023.

On the other hand, emerging companies such as Benab, Dukes, Gaso, and Frimps achieved growth, with Dukes Petroleum notably replacing Petrosol among the top 10 OMCs.

Goil Plc led the market, selling over 700,000 metric tons of refined products in 2023. Star Oil, Vivo Energy, TotalEnergies, and Zen Petroleum each marketed more than 300,000 metric tons, while four other companies sold between 100,000 and 200,000 metric tons. Frimps Oil's sales fell below 100,000 metric tons.

In terms of infrastructure, the number of retail outlets has grown significantly, rising from 3,038 in 2014 to 5,046 in 2023—an increase of 66%.

Despite the expansion in retail outlets, it has not led to increased productivity. Retail outlet productivity declined by 22% in 2020, primarily due to reduced consumption during the COVID-19 lockdowns.

However, national petroleum product consumption recovered in 2023, increasing by 6% from 4.22 million metric tons in 2022 to 4.49 million metric tons. This growth underscores the sector's resilience and potential for further expansion.

Ghana’s OMC landscape continues to evolve, with emerging players making notable gains and established leaders encountering growing pressure to adapt to the shifting market dynamics.

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Source: citinewsroom.com