Petroleum price regulation was implemented in Ghana with the ratification of the National Petroleum Authority Act, 2005 [Act 691] that further established the National Petroleum Authority (NPA) as the regulator for the downstream petroleum industry whose key directive is to control, supervise and oversee the operations of the industry and to create a Unified Petroleum Price Fund (UPPF) for price unification in the industry. This transpired against the context of a time-frame in which petroleum products were imported, marketed and priced under state control. The study’s findings showed that the financial performance of the OMCs which was measured using ROE was higher during the period of price regulation between 2013 and mid–2015 (June 2015) compared to the deregulation periods (i.e. mid–2015 to 2019). However, the OMCs’ gross sales have dramatically appreciated relative to the regulatory era during the deregulation phase. The study recommends refinement of the pricing methods to ensure that it accommodates and addresses the issues posed by major downstream industry stakeholders in order to ensure the sustainability of the margins of the sector and thereby improve the financial and overall operational efficiency of which is expected to have a trickle-down effect on the economy.
Table of Contents
- Abstract
- Introduction
- Financial Performance and Price Regulation
- Empirical Review/Evaluation
- Research Methodology
- Design of the Study
- Data Collection
- Data Analysis
- Results and Data Analysis
- Petroleum Price Regulation and its Effect on Return-On-Equity (ROE)
- Petroleum Price Regulation and its Effect on Gross Sales
- Descriptive Statistics
- Descriptive Analysis of the Co-factors
- Test for Normality
- Regression Analysis
- Conclusion and Recommendations
- Reference
Objectives and Key Themes
The study aims to examine the impact of petroleum price regulation on the financial performance of oil marketing companies (OMCs) in Ghana. It seeks to ascertain the effect of price regulations on the Return-On-Equity (ROE) and gross sales of OMCs in Ghana.
- Petroleum price regulation in Ghana
- Financial performance of OMCs
- Impact of price regulation on ROE
- Impact of price regulation on gross sales
- Sustainability of margins and operational efficiency
Chapter Summaries
- Abstract: Provides an overview of the study, highlighting the implementation of petroleum price regulation in Ghana and its effect on OMCs' financial performance.
- Introduction: Discusses the complex nature of oil and gas pricing, emphasizing the importance of price regulation in protecting consumers, especially in developing economies. It explores the arguments for and against price regulation, as well as the global energy requirements and volatility in petroleum prices.
- Financial Performance and Price Regulation: Defines financial performance and its significance for companies, highlighting the subjective nature of its measurement. It explores different methods for assessing financial performance, emphasizing the impact of price regulation on overall organizational performance.
- Empirical Review/Evaluation: Reviews existing studies on the effect of price regulation on financial performance in various sectors, including oil and gas, pharmaceuticals, and other industries. The summaries showcase different approaches and findings regarding the impact of price regulation on profit growth, market share, and competition.
- Research Methodology: Outlines the design of the study, focusing on the event study approach to investigate the financial performance of OMCs during price regulation and deregulation regimes. Details the data collection methods, including the use of financial statements from Star Oil Company (SOC) Limited and reports from the National Petroleum Authority (NPA).
Keywords
The study focuses on key terms such as petroleum price regulation, petroleum price deregulation, oil marketing companies, Return-On-Equity, Star Oil Company Limited, trend analysis, and Ghana. These terms highlight the research focus on the impact of pricing policies on the financial performance of oil companies in Ghana.
- Quote paper
- Mohammed Issah (Author), Dr. Riverson Oppong (Author), 2020, An Assessment of Petroleum Price Regulations on the Financial Performance of Oil Marketing Companies in Ghana, Part II, Munich, GRIN Verlag, https://www.grin.com/document/979620
