State institutions owe GOIL over GH¢20 million

Key state institutions owe the Ghana Oil Company Limited (GOIL) more than GH¢20 million, accrued from the consumption of petroleum products.

The oil company is facing liquidity challenges as a result of the cedi’s depreciation against major currencies, which has resulted in huge losses.

The company, which is also licensed to operate as a bulk oil distribution company (BDC), is also finding it difficult to raise enough foreign exchange to import finished petroleum products to meet increasing demand.

This has led to a shortage in petroleum products at some GOIL fuel dumps in the capital.

This was revealed by the company’s Managing Director, Mr Patrick A. K. Akorli who, however, declined to name the state institutions.

“We operate as a state institution and it is our mandate to serve state bodies at all times. We also wish to state that the government is doing all it can to settle its indebtedness to us,” he said.

Mr Akorli added: “The reality is that we sell below the ex-pump price. We are recording losses and until fuel prices are adjusted, we will continue to make losses.”

“Despite these challenges, GOIL, in partnership with the Bulk Oil Storage and Transportation (BOST) Company Limited and the Ghana National Petroleum Corporation (GNPC), is working around the clock to ensure that enough petroleum products are supplied to the market before the beginning of next week,” he added.

He said the situation would normalise in a week or two.

The petroleum industry is currently facing a liquidity crisis, as the credit lines of most oil marketing companies have been cut due to a GH¢1 billion debt they owe the Bulk Distribution Companies.

Credit: Graphic Online