‘Cash and carry’ cause of petrol shortage – OMCs

Oil-marketing companies (OMCs) have blamed the acute short of petroleum in the country’s capital on a “cash-and-carry” system being foisted on them by the Chamber of Bulk Oil Distributors (CBOD).

The system refers to a phenomenon where services are rendered only after the payment of cash.

TV3’s rounds at some pump stations in Accra on Wednesday, September 3 indicated that most customers were turned away due to shortage of petroleum.

Gas oil and Diesel is, however, in supply.

Most of the station supervisors talked to by TV3’s Sandra Amarquaye said the bulk distribution companies (BDCs) seem not ready to supply the products without cash.

They seem to have lost confidence in government, said one supervisor.

The BDCs have also complained about failure by commercial banks in Ghana to offer letters of credit for them to clear products from vessels, therefore, forcing them to be "hard" on OMCs.

Though government has settled part of their arrears, the BDCs are said to be hesitant to supply the products on credit.

The National Petroleum Authority (NPA) is yet to react to the crisis.