$60m cannot save fuel situation-BDCs

It appears government’s payment of 60 million dollars of its indebtedness to bulk oil distributors cannot stopgap the imminent fuel shortage in the country.

BDCs according to government are owed some 84 million dollars. A fallout of this has been their inability to raise letters of credit to import fuel into the country.

The phenomenon is having a biting toll and several filling stations are fast running out of stock.

Government has ordered that the finance ministry releases some 60 million dollars to defray a portion of the debt to allow the BDCs release some cargo unto the market.

However, CEO of the Ghana Chamber of BDCs, Sena Hosi contends the amount cannot guarantee the country any stocks. He stated, “it must be noted that that money is not actually intended for BDCs, but it is part of the direct exposure that goes to the banks.”

“I have no assurances for anybody and if we are going to find product out there, it has very little to do with the release of the 60 million dollars to the banks which the Bank of Ghana already owes anyway”

He says the companies are now looking to raise some funding offshore to replenish Ghana’s fuel stocks.