Govt releases strategic fuel reserve to solve petrol shortage
The government has released its strategic reserves of petroleum products from the Bulk Oil Storage and Transport Company (BOST) onto the market to address the current shortage of the products in the country.
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A statement signed by the Minister of Information and Media Relations, Mr Mahama Ayariga, said the petroleum products were expected at the filling stations last night.
It noted that the government had also paid the Bulk Distribution Companies (BDCs) GH¢450 million by way of forex subsidies owed them.
In addition, the statement indicated that the government had facilitated a $100 million forex cover to the BDCs.
“With these two measures, the BDCs are enabled to obtain letters of credit (LCs) from the banks for petroleum products imports,” it said.
The statement cautioned petroleum products outlets to refrain from hoarding the products delivered to them.
The government deeply regrets the inconvenience suffered by motorists, it intimated, but assured the public that “every effort is being made to ensure the adequate availability of petroleum products in all parts of the country.”
Speaking earlier on Joy FM, an Accra-based radio station, Mr Ayariga said following the directive by President John Dramani Mahama, the reserves had started pumping fuel and distributing it to the various filling stations.
He said the release of the strategic reserves would increase fuel supply to the various fuel filling stations and consequently ease the shortage by today.
Origin of the problem
Early this week, the BDCs warned of a looming fuel crisis as a result of the association’s inability to raise LCs to honour supplies.
It said the country had less than a week’s stock of the products.
The Chief Executive of the Chamber of BDCs, Mr Senyo Hosi, was on record to have disclosed that there was a week’s stock of petrol and diesel on standby, but it would only be released if the government settled part of its indebtedness to the BDCs.
The BDC’s concern followed the government’s inability to pay the GH¢1.8 billion owed them, which had also been accruing since 2011.
Fuel shortage
A check at filling stations showed that people were buying ‘super’ into containers for storage at the few places that had the product.
The shortage of the product has resulted in a mad rush for other versions of the product which are more expensive.