Posted: Saturday 28th June 2014 at 10:44 am

Mahama Orders Release Of Strategic Fuel Reserves


President John Mahama
The President has ordered the release of government’s strategic fuel reserves onto the market.

The Information Minister, Mahama Ayariga on  Eyewitness News  said: ‘It’s not true that we don’t have strategic reserves in the systemand as at the early part of this day [Friday], the President directed that it should be released and so it was being pumped out.’

The Minister also stated that government has made part payment of its debts to the Bulk Oil Distribution Companies (BDCs) to enable them supply Ghanaians with petroleum products.

He was however unable to give a definite timeline for when will be available on the market.

This he blamed on administrative procedures have to be followed before the product will be released.

For about four days now, there has been shortage of petroleum products across the country with Accra been most affected.

Vehicles have been queuing for days at fuel stations in anticipation of being supplied.

Productivity levels have reportedly reduced across all sectors of the economy as workers and businessmen search or queue for fuel.

A few have also advantage of the situation to sell petroleum products at exorbitant prices.

The BDCs had earlier warned they will not be able to supply Ghanaians with fuel because government owed them GHC 1.8 billion.

But the President on Wednesday ordered the Finance Ministry to release an amount of $60 million to pay its debts.

Mr. Ayariga gave the assurance that the strategic petroleum reserves are being transported across the country ‘so that we can immediately ease the pressure on the demand for the product.’

Below is a statement from government addressing the fuel shortage

Government takes steps to address petroleum shortages

 Government has released its strategic reserves of petroleum products from the Bulk Oil Storage and Transport company (BOST) onto the market to address current shortages of the products in the country. These products should be at the filling stations shortly.

Government has also paid the Bulk Oil Distribution Companies (BDCs) an amount of Four Hundred and Fifty Million Ghana Cedis (GH450,000,000.00) by way of forex subsidies owed them. In addition,Government has facilitated a One Hundred Million Dollars ($100,000,000) 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

We deeply regret the inconvenience suffered by motorist but wish to assure the public that every effort is being made to ensure adequate availability of petroleum products in all parts of the country.

Government however cautions petroleum products outlets to refrain from hoarding the products delivered to them.

Signed
MAHAMA AYARIGA (MP)
MINISTER
 

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