The primary objective of this study will be to work out the financial performance of oil marketing companies (OMCs) in Ghana during petroleum price regulation and deregulation regimes. The researcher adopts the event study design and sampling strategy of purposive random sampling techniques in this study. In this study, the researcher seeks to evaluate the financial performance of oil market companies (OMCs) in Ghana during petroleum price regulation and deregulation regimes. The study also found that, after the deregulation of petroleum prices, there was positive growth in the company's gross sales. The positive effect of the company's financial performance can be attributed to the introduction of the petroleum price deregulation in the downstream petroleum industry. This is to say that the deregulation policy was gradually impacting favourably on the financial performance of the company.
Table of Contents
- Abstract
- Introduction
- Petroleum Pricing
- Financial Performance and Price Regulation
- Determinants of Financial Performance of Oil Marketing Companies (OMCs)
- Supply Chain Efficiency
- Foreign Exchange Rates (Forex)
- International Oil Prices
- Empirical Review/Evaluation
- Research methodology
- Design of the Study
- Analytical Model
- Test of Independence
- Differences in Financial Performance during Regulated and Deregulated Periods
- Analysis of Variance (ANOVA) (Statistical Significance of the Model)
- The Chi-square (x²) Test for Independence
- Conclusion and Recommendations
- Reference
Objectives and Key Themes
This study aims to analyze the financial performance of oil marketing companies (OMCs) in Ghana during periods of petroleum price regulation and deregulation. The research focuses on the impact of price regulation on the profitability of OMCs and seeks to understand how deregulation has affected the company's gross sales.
- The impact of petroleum price regulation and deregulation on the financial performance of oil marketing companies in Ghana.
- The impact of price regulation on the profitability of OMCs.
- The effect of petroleum price regulations on the trend of gross sales for OMCs in Ghana.
- The differences in financial performance of OMCs during regulated and deregulated periods.
- The role of supply chain efficiency, foreign exchange rates, and international oil prices in the financial performance of OMCs.
Chapter Summaries
- Abstract: This chapter introduces the study's objective, which is to analyze the financial performance of oil marketing companies (OMCs) in Ghana during periods of petroleum price regulation and deregulation. The study utilizes an event study design and purposive random sampling techniques to evaluate the financial performance of OMCs, with a focus on Star Oil Company (SOC) Limited as a case study. The study finds that deregulation has had a positive impact on the company's gross sales, indicating a favorable effect on financial performance.
- Introduction: This chapter explores the context of declining oil prices and their impact on both oil-exporting and importing economies. It highlights the significant role of oil and gas in government revenue, particularly in countries like Ghana, where declining oil prices have led to revenue reductions and cost-cutting measures within the private sector. The study focuses on analyzing the impact of declining oil prices on corporate performance in Ghana, specifically in the downstream petroleum sector.
- Petroleum Pricing: This chapter discusses the economic principle of regulation, differentiating between structural and conduct regulation. It highlights the impact of price control on petroleum products, noting that many developing countries, including Ghana, employ direct price controls to manage price volatility. The chapter introduces the Organisation of Petroleum Exporting Countries (OPEC) and its influence on global petroleum prices, as well as the role of the National Petroleum Authority (NPA) in regulating the downstream petroleum sector in Ghana.
- Financial Performance and Price Regulation: This chapter examines the impact of price regulation on the financial performance of oil marketing firms, using a case study from Oman. It highlights the significant influence of price regulation on profitability due to changes in market structure. The chapter references Porter's competitive model, which posits that pricing is a dominant strategy for firms competing in a market, emphasizing that price regulation can limit the effectiveness of pricing as a competitive factor.
Keywords
The key terms and concepts explored in this study include petroleum price regulation, petroleum price deregulation, return-on-equity, oil marketing companies, Chi-square, ANOVA, trend analysis, Star Oil Company Limited, and Ghana. The research focuses on the impact of price regulation on the financial performance of OMCs in Ghana, utilizing statistical methods like Chi-square and ANOVA to analyze financial data and identify significant trends.
- Quote paper
- Mohammed Issah (Author), 2020, Petroleum Price Regulations on the Financial Performance of Oil Marketing Companies in Ghana, Part I, Munich, GRIN Verlag, https://www.grin.com/document/979621
