The operations and marketing manager of one of Ghana's major oil marketing and retailing companies, Goenergy, says he wants to stop paying for products on letter of credit (L/C) terms.

Amentor Aziakor wants to talk with oil trading companies and the Bulk Oil Storage and Transportation Company (BOST) to find payment mechanisms that are less expensive than L/C transactions.

Customer benefits

Aziakor wants to see an end to costly L/C based payment mechanisms so that customers will benefit from lower prices at the pump.

To do this he says he will negotiate with oil trading companies that sell products and BOST, which delivers fuel to filling station forecourts, to "eliminate the need for L/Cs."

Market forces

The state-owned marketer and retailer is also trying to end practices under which Ghana's oil trading companies have been able to substantially shape the market by withholding deliveries.

Goenergy is a subsidiary of Ghana Oil Company Limited (GOIL) and was recently established to transform GOIL from a near-moribund state enterprise to become a substantial player in Ghana's oil market.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.