Fuel shortage scare: The problem facing BDCs is shortage of forex to pay suppliers – Senyo Hosi

Mr. Senyo Hosi

The Chief Executive Officer (CEO) for the Chamber of Bulk Oil Distributors (CBOD), Mr. Senyo Hosi has disclosed that the threat of fuel shortage in the country is largely due to the challenge of Bulk Distribution Companies (BDCs) securing the needed forex (dollars) to pay suppliers.

In the past week, there have been fears of a possible shortage of fuel in the country due to the scarcity of the required forex [dollar] to settle suppliers of petroleum products imported into the country.

Engaging the media in a virtual CBOD Media Dialogue session on Thursday, June 23, 2022, Mr. Senyo Hosi allayed fears of the potential fuel shortage.

Although he admitted that there are challenges in relation to the forex, he noted that CBOD is working with sector players to resolve the issues.

He indicated that there are talks with the commercial banks to intervene since the Bank of Ghana (BoG) has been reducing the amount of forex the BDCs require to pay suppliers.

“The real problem is making sure that we can be able to pay for what we are buying and paying for what we are buying is not collecting cedis but trying to convert the cedis to dollars at the right price. If you convert them to a price that is too high and they are losses then it means you can’t fully pay suppliers and they won’t continue to supply you.

“So that is what we have to fix. I’m quite confident in the next two, or three weeks we should resolve those problems and as we resolve them a lot more confidence will come,” Mr. Senyo Hosi told journalists.

Already, the CBOD CEO has assured Ghanaians that the country had one month fuel cover.

Mr. Hosi added that in the next few weeks, additional petroleum products should come in.