GOIL denies government influenced its fuel price reduction
GOIL denies government influenced its fuel price reduction
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The Chamber of Petroleum Consumers (COPEC), has appealed to the largest oil marketing firm, GOIL, to reconsider its decision to suspend its membership from the Association of Oil Marketing Companies (AOMCs).

According to COPEC’s Executive Director, Duncan Amoah, the exit of GOIL from the AOMCs could weaken the association since GOIL is the biggest player in the industry.

“We would beg that GOIL should reconsider their position because once they leave, it weakens the association and as a business association, if the larger player is no longer part of it, you could as well imagine what becomes of the association as far as their decision and pressures they want to exert on government is concerned,” he said.

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GOIL on Wednesday announced its withdrawal from the AOMCs following allegations by the leadership of the association that the government influenced the company to reduce the price of its petroleum products.

In a statement, the company sharply criticized the AOMCs for peddling such a claim against it and described it as “gross disrespect.”

“We at GOIL believe that the Association has shown gross disrespect to the company and treated it with contempt and public ridicule and has therefore decided to suspend our membership of the Association immediately,” GOIL said in its statement.

But Duncan Amoah said while the position of GOIL is understandable, it should not severe ties with the association in order to ensure that the association maintains its strong collective bargaining power and influence.

“Some initial talks have gone on and GOIL is really not too enthused about the position that the association took although they also did not take that position in a vacuum except to say that as a member of their association, the onus would have been bigger on them to consult or to ask and possibly also make an informed position on that issue this is one of the things that we never really expected,” he said.

Duncan Amoah cautioned that should GOlL completely fall out with the association, the oil marketers may not have the required muscle to press home certain demands, especially from the government.