CEO of the Chamber of Bulk Oil Distributors Senyo Hosi has charged petroleum service providers in the African continent to increase cooperation among their industries to tackle the disruptions and opportunities from the Covid-19 pandemic relevant and thrive in the future. Mr. Hosi was speaking on the topic, “Scaling Value for Oil Marketing Companies Post-Covid-19 – Focus on technology” at the Oil Trading & Logistics Virtual Expo.
Senyo Hosi, assessing the impact of covid-19 on the sector said the resultant movement restrictions as well as “quick advancement into virtual engagements” impacted transportation fuels. He noted the pandemic had resulted in a major fall in demand for petroleum products globally and an attendant drop in prices and margins. He added that the disruptions brought on by Covid-19 could result in asset underutilization which has implications on profitability.
Mr. Hosi nonetheless expressed confidence that the covid-19 situation comes with opportunities, and African businesses must take advantage of this to succeed despite the challenges. He outlined ‘route to scale’ which he outlined in his presentation.
“We need to rethink our value proposition.” Senyo Hosi tasked petroleum service providers to meet the needs of the customers beyond selling fuel.
He also called for a consolidation of the market, adding “there is a need for increased cooperation” in the continent.
Senyo also called for the need to re-engineer our approach to the market by increasing digitization and automation and lastly expediting the transition into the 4th industrial revolution.
The 14th Oil Trading & Logistics Virtual Expo is ongoing from 26-30 October 2020. Other distinguished speakers at the event included Ghana’s Deputy Energy Minister (responsible for Petroleum) Dr. Mohammed Amin Adam, Mr. Adetunji Oyebanji, Chairman of the Major Oil Marketers Association of Nigeria, and Mrs. Audrey Joe-Ezigbo, President of the Nigerian Gas Association.