We need to sanitise the funding structure of the petroleum industry to avoid shortages – Senyo Hosi
The Outgoing Chief Executive Officer of the Chamber of Bulk Oil Distribution Companies, 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 the 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.”
Source: Ghana News
