Rising petroleum prices cause of fuel shortage at some OMCs – IES

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The Institute for Energy Securities (IES) says the inability of some Bulk Oil Distribution Companies (BDCs) and Oil Marketing Companies (OMCs) to raise adequate funds to buy petroleum products is the cause of fuel shortages in parts of the country.

Nana Amoasi VII, the Executive Director of IES in an interview on Eyewitness News, said due to the high cost of the products, the OMCs and BDCs are only able to purchase less than their regular stock.

He said the companies urgently require more capital injection to be able to buy their regular stock, which is adequate enough to meet Ghana’s demand.

IES a few weeks ago predicted fuel shortages in the country. There are reports that some filling stations are out of stock.

“We were clear in our minds that while the prices were going up and the cash flow of the BDCs and OMCs are depleting, we will not be able to get the needed [fuel] supply on the market. This is because they cannot import as much as they should until there is a new capital injection into their business. We all know the economic environment as we speak. It is not easy to come by money and so as we speak today, we know that the OMCs are struggling to stock the amount of diesel, petrol and kerosene,” he said on Eyewitness News.

Some social media users have complained about their inability to get fuel at various oil marketing companies, particularly Goil.

Citi News checks indicate that many customers were turned away from some fuel stations due to the lack of fuel.

Nana Amoasi VII was of the view that until the BDCs and OMCs are able to secure the funds to purchase their regular supply quantities at the new prices, the situation will persist and may get worse.

He said the shortage was noticed mainly along Ghana’s eastern corridor.

“We visited about 40 Goil fuel stations and in the astern corridor, that is where you find the most shortages. We hope that international prices will come down and the OMCs will have capital injection to finance what the country needs,” he added.

Meanwhile, the National Petroleum Authority (NPA) says the country has adequate supplies for at least three weeks; however, more supply of fuel is expected in the country in the coming days.

The post Rising petroleum prices cause of fuel shortage at some OMCs – IES appeared first on Citinewsroom – Comprehensive News in Ghana.

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