Bulk Oil Distributors Reject Allegations of Fuel Hoarding

The Chamber of Bulk Oil Distributors (CBOD) has firmly rejected fuel hoarding allegations levelled against some of its members amid concerns about a possible rise in petroleum prices expected from March 16, 2026.

Responding to claims that certain bulk distributors are deliberately withholding products to take advantage of an anticipated price increase, the chamber’s Chief Executive, Dr. Patrick Kwaku Ofori, described the accusations as unfounded and damaging to the reputation of the industry.

“These allegations cannot be substantiated. They are baseless and unfair to our hard-earned reputation” Dr. Patrick Kwaku Ofori, CEO of GCBOD made it known in an interview.

He emphasized that bulk oil distributors operate under strict regulatory oversight and market conditions that make such practices difficult to sustain.

Dr. Ofori insisted that members of the chamber remain committed to maintaining ethical standards and fair competition within Ghana’s downstream petroleum sector.

The chamber’s response follows growing concerns among some oil marketing companies that product supplies may be tightening ahead of the next fuel pricing window.

The accusations suggested that certain distributors were limiting product availability to benefit from higher prices once the new pricing cycle begins.

However, CBOD maintains that such claims lack evidence and do not reflect the operational realities of the petroleum supply chain.

To support his argument, the CBOD chief executive pointed to the monitoring systems operated by the National Petroleum Authority (NPA), which tracks petroleum product movements and trading activities across the country.

“Anyone in doubt can check from the National Petroleum Authority platform to see if trading has not happened over the past days.”

The NPA’s digital platform records fuel transactions and supply flows within the sector, providing regulators with oversight of product distribution.

According to Dr. Ofori, the transparency offered by this system makes it difficult for market players to conceal hoarding activities.

Beyond regulatory oversight, the CBOD CEO explained that logistical and financial realities within the petroleum supply chain also make product hoarding impractical.

“Looking at the current environment, it will be very difficult to actually hoard fuel because we need the haulage for other business and other vessels to discharge products into the system”

Dr. Ofori added that holding back products would create bottlenecks in the supply chain and potentially disrupt other commercial operations within the sector.

Another factor discouraging hoarding, according to the CBOD chief, is the financial pressure faced by bulk distributors.

Many companies rely on financing arrangements from banks and other creditors to import petroleum products, which means they must sell their inventory quickly to meet repayment obligations. “The banks and creditors are on your neck for payment to be made on product supplied,” Dr. Ofori explained.

Because of these financial obligations, he said distributors have strong incentives to move products through the supply chain rather than stockpile them.

Dr. Ofori also rejected claims that bulk distributors were responsible for sudden price increases in the market.

He argued that companies adjust their prices based on market conditions and business considerations rather than coordinated attempts to inflate prices.

Every player in the industry, he explained, seeks to remain competitive while managing the financial risks associated with petroleum imports and distribution.

According to him, price movements within the supply chain often reflect fluctuations in international oil markets, currency exchange rates, and operational costs.

Looking ahead, Dr. Ofori cautioned that fuel prices at the pump will ultimately reflect developments in global oil markets.

He acknowledged that consumers could see price adjustments depending on international trends and supply conditions. “Consumers will definitely be asked to pay what pertains on the international market,” he said.

This means that even if local supply chains remain stable, global factors such as crude oil prices and geopolitical developments will continue to influence fuel costs in Ghana.

The CBOD CEO emphasized that maintaining stability and transparency within the downstream petroleum sector remains a priority for industry players.

He urged stakeholders to rely on verified information and regulatory data rather than speculation when assessing market developments.