The Chamber of Bulk Oil Distributors (CBOD) has complained that illegal fuel imports into Ghana adversely affected the Bulk Distribution Companies (BDCs) between May and July 2017.
The Chamber which made the observation in its maiden report on the sector explained that such acts created unhealthy competition in the industry and threaten the ability of BDCs to honour their financial obligations to their suppliers and banks.
[contextly_sidebar id=”aOxIKyENkJ1Od57zJKVmGZKlC1avCdP5″]The National Petroleum Authority (NPA) earlier in 2017 disclosed that Ghana was losing about GHc850 million annually in taxes, due to the increased activities of fuel smugglers into and out of the country.
According to the report such conditions including consistent reduction in crude oil prices on the international market made consumers benefit more within the period under review at the expense of the BDCs.
“The months under review saw consumers and OMCs benefit from lower-than-market ex-ref and ex-pump prices. This has been at the expense of BDCs who have had to trade at uneconomic to negative margins.”
The report also noted that “this situation is unsustainable and poses a major risk to the viability of BDCs.”
The Chamber further called on industry regulators to take immediate steps “to mitigate this evolving risk.”
Click here for the full report:
–
By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin