There is a growing observation that Ghana’s Oil Marketing Sector (OMCs) is highly overcrowded, affecting the efficiency of the industry.
The latest to make this observation is the former Minister for Power and also former Chairman of the Parliamentary Select Committee on Mines and Energy, Dr. Kwabena Donkor.
The former Minister has also observed that Ghana’s downstream petroleum sector is crowded with many OMCs, but that multitude of players isn’t translating into a stronger or more efficient industry.
Dr. Kwabena Donkor joins the industry’s association, Chamber of Oil Marketing Companies (COMAC), which also believes the sector is beset by inefficiencies because too many companies are chasing a limited share of the market.
The former minister made the case during an exclusive interview with The High Street Journal, arguing emphatically for consolidation through mergers and acquisitions to strengthen competitiveness and enhance long-term viability.
Why Consolidation Matters
The foundation of Dr. Kwabena Donkor’s argument is that when hundreds of OMCs operate independently, each manages separate accounts, reporting, and compliance requirements, it places an enormous regulatory burden on the National Petroleum Authority (NPA).
The situation, believes, makes effective supervision difficult and costly.
He argues that a consolidated downstream industry, with fewer but stronger players, would be better equipped to invest in storage, distribution, and service quality, while enhancing compliance and reducing systemic risk.
“There is a need to expand the downstream sector. Expand in terms of volumes, not necessarily in terms of OMCs. Indeed, I call for a consolidation of OMCs. I believe we have too many OMCs. And so the level of efficiency is undermined by having too many OMC’s. The regulatory burden on the regulator becomes too much,” he told The High Street Journal.
He added, “Instead of examining 20 accounts, we are examining 300 accounts. So the cost in terms of manpower, and because there are too many of them, they are unable to grow to the levels that will make them a real force in the industry.”
A Call that Echoes COMAC’s Concern for Rationalisation
The call for consolidation is not unique to Dr. Donkor. Industry body Chamber of Oil Marketing Companies (COMAC) has also highlighted structural imbalances in the market.
COMAC’s own analysis reveals that roughly 30% of the marketers control about 70% of total fuel volumes nationwide, even though the sector is heavily populated with licensed operators.
This concentration creates an unhealthy competitive dynamic, where dominant players are resilient during market shocks while smaller firms struggle with razor-thin margins and operational constraints.
COMAC has therefore called for aggressive mergers and consolidation to reduce overcrowding, improve efficiency, and foster a more stable deregulated market.
What Consolidation Could Look Like
According to both Dr. Donkor and COMAC, consolidation could take several practical forms, such as encouraging acquisitions where stronger OMCs integrate smaller ones into their operations.
The proponents also believe there could be formal merger frameworks that help weaker operators combine resources
The goal is not just to reduce numbers but to create a healthier competitive ecosystem where companies are robust enough to withstand volatility, invest in infrastructure and comply with industry standards.
The Bottomline
Data cited by The High Street Journal put the number of OMCs operating in the country in the region of 200 and 300. However, the numbers are not resulting in efficiency of the industry.
As debates over pricing policies, regulatory compliance and market stability continue, the proponents believe that a stronger consolidation could be a key part of the solution.
COMAC, and the former Minister for Power maintain that Ghana needs fewer but more capable OMCs, not many and inefficient.
