The prices of crude oil on the world market may slow down the National Petroleum Authority (NPA)’s projections to pay off debts owed the Bulk Oil Distribution Companies, BDC’S.
The NPA projected the end of February this year to pay off debts owned the BDC’s but it seems this will not be realized.
[contextly_sidebar id=”2kTo6ik5Busor3KnmIPkK2ayFrPdpBb3″]Citi Business News checks shows that the National Petroleum Authority may not be able to pay off debt owed the Bulk Oil Distribution Companies (BDC’S) following the rising of prices of crude oil on the world market.
The steady fall of crude oil prices from USD 133 per barrel in July 2014 to about USD 46 dollars since the beginning of February 2015 represents a 59 percent decrease; a situation which market watchers say will affect NPA’s chances to be able to pay off debts owed the BDC’s.
But the BDC’s say they are not worried with the current situation of crude oil prices on the world market.
President of the Chamber of Bulk Oil Distribution Companies BDCs told Citi Business News, they were hopeful the debt will be paid.
‘We are not worried, we are constantly engaging with government on various modules to help defray the debt and the urgency and the importance of it, is well understood by all parties and its implications to the economy’.
Energy Consultant, John Peter Amewu however believes that government will have a hard time paying off debts it owes the bulk oil distribution companies.
‘Government will invariably have to pay the BDC’s but my worry is that if government is having that money available they will have to allocate to BDC’s unfortunately I think there is no way government is going to make that payment.’’
Mr Amewu adds that ‘government has already seen a tax margin of 17 and half percent which they said was not on the ex-pump prices, but that was a lie looking at the price build up, it was clear that the 17.5 percent cut across.’ He stressed.
The National Petroleum Authority last year paid GHC 200 million to the bulk oil distribution companies.
This amount was accrued following the refusal of the authority to reduce fuel prices at the pumps despite the fall in crude oil prices on the world market.
According to earlier projections by the NPA, all debts owed the BDC’s would have been paid by the end of this month if windfall from the low prices of crude on the world market remained the way it was.
By: Lorrencia Nkrumah/citifmonline.com/Ghana