Oil marketing companies urged to adhere to schedule terms of payment

Accra, Oct. 6, GNA - The Association of Oil Marketing Companies (AOMC) on Tuesday urged members, management of Tema Oil Refinery (TOR) and the banks, to adhere to the schedule of payment terms for the lifting of petroleum products.

In an interview with Ghana News Agency in Accra, Mr Kwaku Agyemang-Duah, Industry Co-ordinator of AOMCs said the association had entered into a special contract arrangement with the management of TOR tagged: "Schedule of Payment."

The Schedule of Payment contract terms mandates the OMCs to lift oil products from TOR based on a bank guarantee. Payment is to be made within 14-days from the day of lifting. He said the association would not condone and connive with any member or members who failed to adhere to the schedule of payment terms.

"We will not hesitate to expel any member whose operations dent the image of the association," he warned.

Responding to recent media report on TOR cutting fuel supply to 19 oil marketing companies for accumulated debt, Mr Agyemang-Duah called for circumspection in the publication of such list.

The publication quoted sources at TOR indicating that the decision to stop supplies to those companies was part of the government's efforts to clean TOR's books.

It noted that because of TOR's huge indebtedness, most banks had been reluctant to raise letters of credit for TOR but everything possible was being done to ensure adequate fuel supply to the market. He said although it was not a requirement for all network marketing companies to become members of the association, they could benefit from co-operate recognition.

Mr Agyemang-Duah called on oil marketing companies yet to register with the association to come on board, for "in unity lies strength". He said in spite of the challenges, the association was collaborating with the Ministry of Energy, TOR and the banks to ensure that all indebted companies adhered to the schedule of payment terms. Mr Agyemang-Duah appealed to stakeholders in the industry to exercise restraint in rushing to the press with operations in the oil industry especially operations of TOR, national oil reserves, movement of oil ships to Ghana, stressing "these have national security implications."

He said unguarded statements and publications could affect the security and stability of the state. Mr Agyemang-Duah, said whilst not all marketing companies were members of AOMC for varying reasons, the association still represented the largest national governing body of the network marketing industry and therefore could provide the most accurate reflection of national growth and sales figures for the industry.