The outgoing Chief Executive Officer of the Ghana Chamber of Bulk Oil Distributors, Senyo Hosi, has warned that there could soon be a petroleum supply crisis as a result of government’s failure to appropriately fund the sector.
According to him, the government’s fixation on guaranteeing lower prices at the pump at the expense of Bulk Oil Distributors and Oil Marketing Companies has starved the industry of much needed funds to ensure the smooth running of business.
He noted that currently, banks and the CBOD are working earnestly to de-risk the situation; however, this intervention will not be sustainable if no concrete actions are taken to sanitise the funding structure of the petroleum industry.
Speaking on JoyNews’ PM Express Business Edition, Senyo Hosi said, “That’s why we have to make sure we properly sanitise the structure, the funding structure, because it is the biggest problem you have in this industry. You have a shortage problem when you actually have a funding problem.
“The last time we had a shortage in this country was because we had a funding problem created by government’s unpaid subsidies. In recent times, the close shave that we’ve had has also been a funding problem because of challenges with FX. And even when FX was fixed now we had challenges with the pricing of FX. So it’s always a funding problem that yields shortages in Ghana. It has never had anything to do with supply.
“The product is there, if you pay you get it. If TOR is making a loss – and by my last check, if I’m not mistaken, the company’s salary is already around 12 point something million cedis a month, income it’s generating is around 4, less than 5million cedis a month. What do you expect? You’re making losses. Will you be able to pay your suppliers? You can’t.
“And if you can’t pay your suppliers what will happen? They’ll stop giving you. What will happen next if you’re the only one supplying? There will be a shortage. Funding is the only thing that causes shortages in Ghana, it is not the absence or an excessive competition for the supply of the product, we can’t find it, there’s nothing like that.”
Latest Stories
-
Gold Fields Ghana Foundation challenges graduates to maximize benefits of community apprenticeship programme
44 mins -
GBC accuses Deputy Information Minister Sylvester Tetteh of demolishing its bungalow illegally
56 mins -
Boost for education as government commissions 80 projects
1 hour -
NAPO commissions library to honour Atta-Mills’ memory
1 hour -
OmniBSIC Bank champions health and wellness with thriving community walk
1 hour -
Kora Wearables unveils Neo: The Ultimate Smartwatch for Ghana’s tech-savvy and health-conscious users
1 hour -
NDC supports Dampare’s ‘no guns at polling stations’ directive
1 hour -
Police officer interdicted after video of assault goes viral
2 hours -
KNUST’s Prof. Reginald Annan named first African recipient of World Cancer Research Fund
2 hours -
George Twum-Barimah-Adu pledges inclusive cabinet with Minority and Majority leaders
3 hours -
Labourer jailed 5 years for inflicting cutlass wounds on businessman
3 hours -
Parliament urged to fast-track passage of Road Traffic Amendment Bill
3 hours -
Mr Daniel Kofi Asante aka Electrician
3 hours -
Minerals Commission, Solidaridad unveils forum to tackle child labour in mining sector
3 hours -
Election 2024: Engagement with security services productive – NDC
3 hours