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National

Bulk Oil Distributors facing acute dollar crunch

Daisy Gyabaa is the Head of Corporate and Industry Operations at the Chamber of Bulk Oil Distributors

The Chamber of Bulk Oil Distributors says it is facing an acute dollar crunch as the Bank of Ghana is able to supply them with only 30% of the forex they need to import petroleum products.

The BDCs say they have also piled on huge debts due to the rising cost of imports.

In an interview with JoyNews, the Head of Corporate and Industry Operations said the rapid depreciation of the cedi has created a situation where money earned from selling fuel products in the country, when converted into dollars, is unable to make up for the cost of products on the international market.

Daisy Attu Gyabaa explained that the development has created a situation where they are unable to pay their suppliers for the products.

“We don’t have enough FX to be able to pay our suppliers. So, beginning of the year BoG came in, did a fantastic job of providing guaranteed FX to the industry. But the problem is here, again, it's that they are not able to supply everything that we need.”

“So you need to go to your commercial bank or if there are nay sources you can get legally. So you go to commercial banks, there are other people who trade in FX, you have deals with them to be able to pay your supply,” she said.

JoyNews understands the BDCs require $400 million every month to import petroleum products, but they are only able to raise $120 million from the Central Bank.

Daisy Gyabaa, however, dismissed suggestions that the situation has affected their ability to import petroleum products and creating an impending shortage.

She added that the outfit has been engaging government and relevant stakeholders and that they hope there would be an increase in supply of foreign exchange to the sector.

https://www.myjoyonline.com/our-members-are-currently-bleeding-ceo-bulk-oil-distributors/

“There is debt, it might not have crystalised but we need to prepare to be able to pay that debt. Once the supply is increased, the rate being guaranteed would reduce the speculation so you wouldn’t put 18 when you know that you have been guaranteed a price of 12.

“We are still importing products; we haven’t had any cancellation of contracts. There are still products in the country, there is no shortage imminent."

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.