18 June 2014

Ghana: Fuel Shortage Looms in Ghana

Accra — THERE are fears of a looming fuel shortage in Ghana following reports government had not paid members of the Chamber of Bulk Oil Distribution Companies (BDCs).

It is reported government owed an amount of GHC 1.5billion in subsidies.

As a result of the indebtedness, the Chief Executive Officer of the Chamber, Senyo Hosi, said their banks had denied them lines of credit because of the rising debt level.

He explained that the fuel price should have gone up last week but the government decided to absolve it.

This, he noted, meant that an estimated GHC 40million will be spent on subsidy for the recent price that was not adjusted.

“In the past year we have managed to keep the level of stock very reasonable. We have had strategic stock up to about four weeks and even sometimes for about 6 weeks-enough stock that is accessible.

" As we speak, we have less than two weeks stock. In my estimation, that should be about 1.3 weeks. When you are at that level, there is one thing in your face- queues and shortages.

“It is not because BDCs do not want to import, but because those who fund BDCs find our transactions so risky because subsidies are sucking a lot of liquidity from the industry," Hosi said.

The chamber of BDCs CEO therefore called for the full implementation of the automatic adjustment without interference.

Public Relations Officer of the National Petroleum Authority (NPA) , Yaro Kasambata, in an interview with CAJ News , did not discuss the issue at length.

“We are holding a meeting over the matter,” he said when contacted for comment.

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