The Chief Executive Officer (CEO) and Managing Director of GOIL PLC, Edward Abambire Bawa, has made a strong case for a review of the country’s fuel import allocation permitting system to promote fairness and support the national development agenda.

Speaking at a dealer engagement forum in Takoradi in the Western Region, he said the current allocation regime, popularly known as laycans, disadvantaged indigenous oil marketing companies (OMCs) such as GOIL and put them in a weaker position compared to multinational competitors.

He explained that GOIL, though a state-majority-owned entity with a mandate to serve all parts of the country — even where there is limited commercial viability — was often left out of the preferred laycan schedules issued by the National Petroleum Authority (NPA).

That, he said, had forced the company to resort to purchasing fuel from competitors at commercial rates, which undermined GOIL’s competitiveness on pricing and its strategic existence.

“If you don’t get a laycan, you have to buy from a rival. They will put their profit on it, and you will also have to add a margin before it reaches the consumer. It makes the product more expensive, and that affects our ability to compete,” Mr Bawa said.

He expressed concern that GOIL received only one laycan allocation in the second quarter of the year, instead of the expected two.

“Even that second one was deferred to August,” he said, adding that the delay negatively affected product availability across the company’s retail outlets, especially in rural areas.

Gains

Despite the challenges, Mr Bawa stated that GOIL had made significant progress in regaining its market share.

In April, GOIL trailed its closest competitor by over nine million litres in sales. By May, that gap had been reduced to just over three million litres, he said.

In June, GOIL surpassed its rival by more than six million litres, largely due to improved product availability and enhanced retail outlet performance.

Mr Bawa said GOIL’s investment decisions in the past — including a $31 million investment in the cylinder recirculation model, a $37 million terminal, and a new $54 million head office — were all aimed at aligning with national policies and improving long-term competitiveness.

However, those outlays also strained the company’s working capital, contributing to earlier supply constraints.

To build a stronger, more resilient company, Mr Bawa announced plans to renovate 30 of its top-performing retail stations and expand its footprint in electric vehicle charging infrastructure.

He also gave an assurance that GOIL was embracing digital transformation and would soon roll out initiatives to provide dealers with real-time financial statements and improved transactional visibility.

“Don’t let people come and deceive you that GOIL is collapsing. GOIL is not collapsing. I can tell you for a fact that there's hope on the horizon and don't give up hope in our company,” he stated.

Mr Bawa also urged stakeholders not to be swayed by misinformation and pledged that GOIL would continue to grow stronger with the support of its dealers, staff and partners.