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National Petroleum Authority NPA to pay BDC debts with interest

The Bulk Oil Distribution Companies owe commercial banks huge sums of money due to government’s inability to pay the debts owed them.

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Director of National Petroleum Authority, Moses Asaga play

Director of National Petroleum Authority, Moses Asaga

The National Petroleum Authority has contracted audit firm, Ernst and Young to validate interest accrued on the 530 million dollar- debts owed Bulk Oil Distribution Companies by government.

The Bulk Oil Distribution Companies owe commercial banks huge sums of money due to government’s inability to pay the debts owed them.

The debts are as a result of subsidies and forex losses accumulated over the years that government is supposed to pay to the BDCs.

READ MORE: Parliament does not decide how much we charge - BDCs

Before the implementation of the petroleum downstream deregulation in June 2015, government agreed to bare the additional cost incurred by BDCs due to drastic fall in the Ghana Cedi against the Dollar.

These plus subsidies placed on petroleum products by government aimed at cushioning consumers form the major components of the debts.

The National Petroleum Authority’s current move to contract Ernst and Young is to ascertain the amounts of interest payable to the BDCs , who will in turn pay commercial banks they owe.

According to Executive Director of the NPA, Moses Asaga, “The NPA has come up with provisional figures in terms of the interests payable to the BDCs. It is those figures that we need Ernst and Young to validate. Once that is done, monies will be released to BDCs.”

Meanwhile,  the Bulk Distribution Companies expect the debt to be cleared by the end of June, 2016. Chief Executive Officer of the Chamber of Oil Distributors, Senyo Hosi describes as satisfactory, steps taken so far to release the monies.

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