Fuel shortage looms as BDCs claim GH¢2 billion gov't debt

Government owes the bulk distribution companies (BDCs) approximately GH¢2 billion, the Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors (CBOD) has told TV3.

The levels of debt have arisen as a result of government’s inability to clear them. Senyo Hosi disclosed this in an interview with TV3’s Sandra Amarquaye on Tuesday, March 24.

The situation could result in acute shortage of petroleum products in the country.

“It is important that our issues are addressed and I have no that government at the right levels really appreciate the implications,” Mr Hosi said. The National Petroleum Authority (NPA) last December indicated in a statement that debts to the BDCs have been halved.

“It is a case that we still have exposure with government that has to be cleared,” the CBOD boss indicated.

“The debt has always been a bit more of a moving thing as almost every other time some come to add.”

Under-recoveries in recent slump in oil prices on the global market were said to have been used to settle debts to the BDCs.

But Mr Hosi announced that government failed to clear a debt of $250 million in 2013 with an estimated $300 million yet to be settled for 2014. “We keep hustling to try and get a few things done.”