SUPPLY of fuel throughout the country is at risk due to a GHȼ1 billion debt owed Bulk Distribution Companies (BDCs) by the Association of Oil Marketing Companies (AOMC).
Consumers will be at the receiving end of the conflict between the two bodies since the ultimate result will be shortage of petroleum products and associated high cost of fuel.
People living in rural areas will be the hardest hit as fuel dispensing stations in rural communities are said to be major debtors.
The BDCs have been struggling to recover some GHȼ1 billion debt from the OMCs without much success, compelling BDCs to sell products on cash-and-carry basis in recent times.
Consequently, Bulk Oil Distributors announced plans to roll out a credit rating system that will determine the credit-worthiness of Oil Marketing Companies (OMCs).
Under the system, OMCs will be rated based on their credit history by classifying them into four categories; namely tier-one, tier-two, tier-three and tier-four.
Tier-one is the best rating while tier-four represents the worst rating.
The Chief Executive Officer of the Chamber of Bulk Oil Distribution Companies (BDC), Senyo Hosi told The Finder that tier-one and tier- two categories will receive products on credit while tier-three and tier-four would be compelled to purchase the products on cash-and-carry basis.
“If you are a tier-four customer, the industry knows you are a tier-four customer. They will not give you the same credit as they will give a tier-one customer,” he said.
Mr Hosi stated that BDCs would equally be rated to monitor how they are complying with the system.
He explained that BDCs that supply products to tier-three and tier-four would be rated high risk and banks would not be willing to lend to such BDCs.
He said the Chamber met OMCs last Friday and will meet the banks this week to finalise discussions on” the issue, adding that the initiative would be launched before the end of this month.
Mr Hossi said while debt collection has improved in recent times due to fuel shortages, a lot remains to be collected.
In a related development, the AOMCs have called on BDCs to respect supply agreement entered with individual OMCs.
Mr Kwaku Agyemang-Duah, Chief Executive Officer of the AOMC, who made the call, rejected the claim by BDCs that OMCs were the main cause of fuel shortage in the country.
He expressed concern that the BDCs kept on shifting the goal post and blamed everybody, “from government to banks and now to the OMCs, leaving themselves. Finder
