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The former Chief Executive of the Ghana National Petroleum Corporation (GNPC), Alex Mould, has warned that Ghana will soon face a fuel crisis if urgent steps are not taken.
In a post shared on Facebook, Alex Mould said that the country will soon be experiencing fuel shortages because companies that import oil products are running out of the needed foreign exchange that will enable them to import these products.
He indicated that these companies are not getting the needed foreign exchange because the Bank of Ghana is also running out of foreign exchange.
“Fuel shortage imminent due to Foreign Exchange (FX) credit crunch unless government intervenes. Banks are reporting a shortage of FX to meet payments of maturing Letters of Credit (LCs) issued to international oil trading companies such as BP Vitol, Trafigura etc.
“This is due to (the) Bank of Ghana’s inability to meet requirements at the various FX auctions. Some Banks have even stopped quoting FX rates as there is simply no availability for the quantities required by the fuel importers (BDCs). This is causing BDCs to max out their credit-line limits with their banks, and the implication is that the banks will no longer have credit lines available for the BDCs to import fuel going forward,” pasts of the Facebook.
Alex Mould added that the government must speed up processes to get an International Monetary Fund bailout to help avert the situation.