The Tema Oil Refinery (TOR) says Bulk Distribution Companies (BDCs) should be considered partners in its operations rather than competitors as it seeks to strengthen its position in Ghana’s downstream petroleum market.
Managing Director of TOR, Edmond Kombat says the companies play an important role in the refinery’s distribution chain by purchasing refined petroleum products for onward sale to Oil Marketing Companies (OMCs).
Speaking on the second day of the Ghana Economic Forum organised by the Business & Financial Times (B&FT), he said TOR’s relationship with BDCs is complementary, as the refinery focuses on processing petroleum products while the distribution companies handle their movement to the market.
“I don’t see the BDCs as an attainment to TOR. I see them as extensions of TOR because they distribute, they buy and distribute. They are not refining,” he said.
Mr Kombat explained that TOR sells its products to the BDCs, which subsequently supply OMCs, making the companies an important part of its commercial operations.
He said the refinery must concentrate on improving operational efficiency, product quality and pricing to remain competitive in Ghana’s deregulated petroleum market.
“What will save you in an open market is your quality and then your price. So we have to run the organisation professionally and make sure that we take our customers seriously,” he stated.
He added that the freedom of companies to import petroleum products means TOR must focus on delivering value to customers rather than making excuses about competition.
“It’s a deregulated market and people are free to bring in petroleum products at any time. We just have to make sure the refinery is resilient,” he said.