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It has emerged that Government's total debt owed the Bulk Oil
Distribution Companies is in excess Ghȼ1.5 billion and not Ghȼ412
million as claimed by the National Petroleum Authority.
The NPA last week in a statement said its debt to the Bulk Oil
Distribution Companies (BDCs) stood at Ghȼ412 million as of July 31,
2014.
Out of that amount, Ghȼ200 million had been paid through the windfall
that has accrued from the declining price of crude oil on the
international market.
However, speaking on the Super Morning Show on Joy FM, Monday, January
5, 2015, Chief Executive Officer for the Chamber of Bulk Distributors,
Senyo Horsi said the amount quoted by the NPA is "just a fraction" of
government's total indebtedness to the BDCs.
"We have over 1.5 billion cedis outstanding that is yet to be paid by
government," he told host of the Show, Kojo Yankson.
A chunk of the debt, he noted, is due to variations in the exchange
rate which was the result of the huge loss in the value of the local
currency against major foreign trading currencies.
Another factor he indicated is the fact that the distributing
companies are forced by the government to sell the products at a fixed
price even when they bought it at a higher price on the international
market.
But the NPA says costs incurred by the BDCs as a result of foreign
exchange losses are not the concern of the authority.
According to Public Relations and Consumer Services Manager for the
NPA, Yaro Kasambata, "The 412 million cedis is the ball that NPA is
keeping its eye on now".
"I am privy to other debts such as the FX (foreign exchange) losses
but that is not what this process is committed to resolving…we are
using over recoveries on the world market price to pay under
recoveries" Mr. Kasambata indicated.
In a related development, Financial Analyst, Sidney Casely-Hayford has
criticized government's decision to reduce the price of fuel products
by 10% insisting that the products could sell at 50% less than current
prices at the fuel stations.
Mr. Casely-Hayford said it is unlawful for the government to continue
to let the taxpayer pay for the debt owed to BDCs while at the same
time charging 53% in taxes on the ex-pump price of petroleum products.
"If the price of crude did not change…who will pay the BDCs? How would
the BDCs be paid? And what will happen to that balance [liability]
that you [government] are so concerned about?"
In his view, "the government would have to pay because it is
collecting citizens' money in the forms of taxes, levies and margins
and it is supposed to use that to defray the cost.".
Credit: Myjoyonline.com
