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Fuel shortage looms … as govt struggles to raise GHC1.5bn

  • SOURCE: | qwesa2big
  • ol

    Shortage of petroleum products is expected to hit the country as government struggles to provide GHC 1.5bil­lion to the Chamber of Bulk Oil Distribution Companies (BDCs). This has resulted in the BDCs facing some challenges in raising money from their banks due to the rising debt level to keep stock in par with future demand.

    The BDC is currently running out of stock as available stock is estimated to last the country a little over a week. This is against the BDCs stra­tegic storage plan which must at all times be estimated to meet supply for a period of four to six weeks. The implication is that there is likely to be other crises as has been witnessed earlier this year when consumers of petroleum products such as LPG, diesel and petrol queue at filling stations for fuel.

    In recent times, fuel prices have been maintained after the National Petroleum Authority (NPA) last reviewed them. This latest move is estimated to cost GHC 40million in subsi­dies but the result would have been a reverse if the prices have been adjusted a little upward.

    Reports indicate that partners who fund the activities of the BDCs are increasingly finding it riskier due to government’s in­tention to shield consumers from paying realistic prices as a result of political interference.

    Subsidies by government is said to be sucking a lot of liquid­ity from the industry resulting in lack of capital for expansion.

    Source by: Ghana/ Business Day

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