Government to pay debt owed BDCs

Government has indicated that it is working to clear debts owed Bulk Oil Distributers (BDCs) - importers of petroleum products, to avoid any shortage on the market.

According to the importers, government's huge indebtedness to them has made it difficult to secure credit from banks for their imports.

This they say could result in shortage of petroleum products on the market soon.

But Deputy Energy and Petroleum Minister, Ben Dagadu, told Joy Business government has engaged the BDCs and an audit is currently ongoing to establish the exact amount to be paid to them.

He said as soon as an amount is arrived at, the debts will be cleared to avert any possible shortage of petroleum products.

The Chamber of Bulk Oil distributors put government's indebtedness to them at about È»2 billion. 

 In a related development, the promise by the National Petroleum Authority (NPA) not to increase prices until June might be on course. 

This is because the Authority has kept prices unchanged at the pumps.

Prices should have been reviewed Thursday morning as part of its adjustment every two weeks but this has not been done. 

So for the next two weeks consumers should be assured they will still be paying È»3.50 for a litre and È»2. 97 for diesel.