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The Ministry of Trade said that it is revising the whole oil and oil products distribution system.
Amakele Yimam public relations head of MoT said that the Ministry is revising the whole oil distribution system in order to prevent the recurrent problem in the distribution of oil seen across in the country.
“We are taking into consideration all the factors that affect the distribution system in the country, from revision of the price to dealers capacity across the country”, he said.
Last week Capital wrote that oil companies will enjoy a 0.20 cents per liter profit margin while dealers will get a 0.16 cents profit margin per liter for fuel and fuel products. For the past several decades oil companies received a 0.06 cents per liter margin while dealers earned a 0.04 cents profit margin per liter for fuel and fuel products.
Amakele refuted the figures. “We have not yet determined the profit margin, increasing a profit margin is one component in the study of the revision” he said.
The government repeatedly rejected oil companies’ request to increase their profit margin from distributing oil and oil products in the last several years.
The oil companies operating in the country such as Total, NOC, Nile Petroleum, YBP, Kobil, Oil Libya, Dallol and Taff Oil asked the Ministry of Trade to revise the profit margin several times. The oil companies also hired consulting firms repeatedly to assess their profit margin and propose recommendations, which they submitted to the government.
Major towns in the country are suffering from a shortage of fuels, particularly gas oil, benzene and kerosene in the recent weeks.