Business News of 2014-06-27

Fuel shortages not due to hoarding – AOMC

The Association of Oil Marketing Companies (AOMC) on Thursday said the current shortage of fuel products was not due to hoarding but purportedly due to the failure to settle debts owed to Bulk Distribution Companies in respect of subsidies, reimbursement and forex loses.
“Lack of supply of fuel at Bulk Distribution Company (BDC) depot points to Oil Marketing Companies (OMCs) have caused the shortage of fuel especially petrol at retail outlets nationwide. “While OMCs regret this unfortunate situation, we would like to state that OMCs are not hoarding petroleum products at their respective retail outlets.
This is contained in a statement issued to the Ghana News Agency on Thursday by the AOMC Chief Executive Officer, Mr Kwaku Agyeman-Duah. The statement said: “on the contrary, we are serving and have served our clients with what we have at our outlets”.
The statement said the indebtedness to the BDCs is impairing the financial health of importing finished petroleum products into the country, adding that, “this regrettably, is beyond the control of the OMCs.”
The AOMCs explained that OMCs are business entities in competitive and volatile environment, adding, "it is inconceivable that we will resort to hoarding – which is an unethical practice”.
The AOMCs said the situation is being monitored and as soon as “BDCs open up their depots. We will serve customers and the general public."