Petroleum Breakdown of how much Ghana loses to illegal imports

The Chamber of Bulk Oil Distributors (CBOD) has made a strong case for the government deal with the importation of illegal products on to the market.

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play Mr Senyo Hosi — CEO, Chamber of Bulk Oil Distributors
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The Chamber of Bulk Oil Distributors (CBOD) is calling on government to clamp down on all importers of illegal products into the market.

This the chamber believes will provide fair competition in the industry.

According to the Chamber, the penetration of the market by the defaulters have led to a revenue loss of about 490 million cedis in 2016 alone.

The Chief Executive of the Chamber of Bulk Oil Distributors, Senyo Hosi says, the activities of these defaulters if not checked, could displace legal operators in the industry and in extreme cases, inoperable.

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“Illegal products have flooded the market; people claim to be exporting products but drop them here. Losing a minimum of 490 million cedis is a major problem…I bring in products in a legitimate way and I have to pay taxes and that will affect my final pricing but those who im port illegalproducts will sell at a lower price because there is no tax component factored into the pricing,” he said.

 

Mr. Hosi explains that, “If I am forced to reduce my prices, that will be unfair to me…We must clamp down on the illegality and make sure things are consistent; people cannot keep evading taxes unfairly while others are subjected to pay.”

The CBOD boss was speaking at the annual general meeting of the Chamber in Accra.

Debt to BDCs estimated at 1.78 billion cedis

He further expressed that government’s indebtedness is hampering the activities of the industry.

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Reports show that,government is indebted to the Bulk Oil Distribution Companies (BDCs) to the tune of about 1.78 billion cedis.

This was after total receipts of about 1.024 billion cedis from the government in the last quarter of 2016 and 47 million cedis in January 2017.

The debt comprises Forex Loss Under-recoveries (FLUR), Real Value Factor (RVF) and FLUR interest.

Other concerns highlighted by the CBOD centered on regulations to guide the role of government’s support to parastatal agencies.

In the Chamber’s view, the policies should among others create a level playing ground for all players to benefit from the market.

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Outlook for 2017

Though the Chamber views 2016 as a challenging one, it is, however, hopeful that 2017 provides an opportunity to turn around its dwindling fortunes.

This will also require responsible competition and astute management of its operations.

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