Benjamin Nsiah, Executive Director of CEMSE
Ghana’s biggest fuel players—GOIL, Total Energies, and VIVO Ghana (SHELL)—are in hot water as the Center for Environmental Management and Sustainable Energy (CEMSE) calls for an urgent shake-up of dealer margins. With sales dropping like a stone, CEMSE says something’s gotta give if these fuel stations are to survive the tough times.
Here’s the deal: fuel dealers are hanging by a thread, earning a measly 18 to 40 pesewas per litre, depending on their contracts. If a dealer splashes out to build their station, they earn a higher margin. But if they manage stations built by the big Oil Marketing Companies (OMCs), they’re stuck with the crumbs. Even the so-called “higher” margin barely covers their skyrocketing expenses—utility bills, staff salaries, and hefty local charges.
NPA figures paint a grim picture: from January to August 2024, petrol and diesel sales nosedived—GOIL saw a 6% slump, Total Energies slipped by 3%, and VIVO Ghana’s Shell outlets took a 4% hit. The ripple effect is hitting dealers right where it hurts—their wallets! GOIL’s dealers reported a drop in earnings, going from a decent Ghc23,000-Ghc38,000 range in January to just Ghc21,000-Ghc36,000 by August. It’s no better for the others—VIVO’s crew watched their take-home pay plummet from Ghc28,000-Ghc60,000 to a skinny Ghc26,000-Ghc27,000. Total’s dealers? They’re feeling the pinch too, with numbers falling from Ghc20,000-Ghc35,000 to Ghc18,000-Ghc32,000. Some are even scraping by with a shocking Ghc6,000 a month!
According to CEMSE, this is a crisis in the making. Utility bills alone can hit upwards of Ghc15,000 a month, and that’s before you count in staff wages and those sky-high loan repayments. Dealers are sounding the alarm, and one didn’t hold back: “These margins are peanuts! We can barely pay our workers or keep the lights on. It’s a losing game!”
With profits evaporating and competition heating up, CEMSE is demanding the OMCs step up and give dealers a fairer slice of the action. They’re calling for at least half of the profit margin to go to dealers, so they can stay in the fight and keep their stations running.
As customers keep their eyes peeled for lower prices at the pump, the big question is: will GOIL, Total, and VIVO listen to CEMSE’s warning, or will they watch their sales and dealer loyalty go up in smoke?
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