Give us tools to track premix distribution – Oil Marketing Companies

Business News of Saturday, 2 December 2017

Source: citifmonline.com

2017-12-02

Industry Coordinator, Association of Oil Marketing Companies, Kwaku Agyemang-Duah

The Association of Oil Marketing Companies (AOMCs), has called on the National Petroleum Authority (NPA), to provide it with the tools to also monitor the premix fuel distribution routes in a bid to ensure transparency and curb the diversion of premix fuel.

The Association also called for the premix fuel distribution routes to be published in the dailies.

At least 200 cases of premix fuel diversions have been cited by the National Petroleum Authority (NPA), since January 2017.

In all instances, products documented to be bound for outside the Greater Accra Region, ended up within the region, according to information obtained by the NPA’s BRV Tracking System and Returns.

Some OMCs have borne the brunt of the criticism in the wake of the scandal.

But in a statement describing some of the criticisms against OMCs as unwarranted, AOMCs said its members “have no means of having any real-time knowledge of diversions as they are not privy to the interface display of the tracking device by NPA, and thus act accordingly… In few cases that OMCs have investigated, they have had cause to terminate the contract with the transporter.”

The Association added that, when it has conducted “gruesome and painstakingly investigations” into the suspected diversion by some OMCs, the results have shown that “some landing beach committee members misdirect the BRV driver to discharge to some other location with compelling reasons and duly append their signature forthwith.”

Thus the Association said its members should be equipped with the interface display “so that they can monitor the fuel and take drastic action.”

“We also believe that the weekly Orders and allocation of Premix should be published in the Media or dailies in an open and transparent Manner,” the AOMCs statement added.

The AOMCs stressed that, it did not “condone or connive with recalcitrant players in the value chain who would like to play an unfair game to sabotage the economy and the state efforts to have subsidized fuel for fisher folks, and will welcome any action to forestall, as part of the actions against illegal fuel sales.”

Find below the full statement

RESPONSE OF ASSOCIATION OF OIL MARKETING COMPANIES (AOMCs) ON PREMIX DIVERSION NEWS ITEM

We have observed with utmost concern a news item on the various media channels to the effect that OMCs have been diverting premix fuel meant for fisher folks at their respective landing beaches. The over generalization and absolute inclusion of all OMCs especially those doing genuine business in this canker, warrant the following reaction;

1. The orders for the landing beach committees(LBCs) are allocated to the selected OMCs by the premix Secretariat on weekly basis

2. The select OMCs on receipt of such orders contract the transporters for the premix to be conveyed to the designated Landing Beach Committee

3. It has been observed that Landing Beach Committee’s, immediately continue to monitor with the respective transporter prior to loading on the Bulk Road Vehicle (BRV) until it’s loaded with a particular phone

4. A member of the landing beach committee then directs the driver of the transporter of the premix fuel to the designated location for the fuel to be discharged. It must be noted that some locations of where fuel is discharged for a particular landing beach committee invariably does not match the name of the landing beach committee as tank its supposed discharge units, may not be located at the jurisdiction of the landing beach committee.

5. The OMCs duly received appropriate documents signed by an official of the landing beach committee to connote that the product has been received in good condition.

6. It is only when claims have been vetted by the NPA that select OMCs get to know that it has been diverted.

7. NPA sanctions the OMC by forfeiture of the freight claims and also put a fine against the OMCs.

8. In most cases, gruesome and painstakingly investigations by some OMCs have revealed that, some landing beach committee members misdirect the BRV driver to discharge to some other location with compelling reasons and duly append their signature forthwith.

9. OMCs have no means of having a real-time knowledge of diversions as they are not privy to the interface display of the tracking device by NPA and thus act accordingly.

10. In few cases, that OMCs have investigated, they have had cause to terminate the contract with the transporter.

WAY FORWARD

1. The AOMCs do not and will not condone or connive with recalcitrant players in the value chain who would like to play an unfair game to sabotage the economy and the state efforts to have a subsidized fuel for fisher folks and will welcome any action to forestall, as part of the actions against illegal fuel sales.

2. It is evident that we, as industry, regulators and the state need to critically look at the motivation for such bad social enterprise (PREMIX DIVERSION)

3. As an interim measure, equip the OMCs to have a tool (interface display) so that they can monitor the fuel and take drastic action.

4. We also believe that the weekly Orders and allocation of Premix should be published in the Media or dailies in an open and transparent Manner

Kwaku Agyemang-Duah (Industry Coordinator )- 1st December, 2017

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