Ghana has bailed out its Bulk Oil Distribution Companies (BDCs) to ensure sufficient fuel supplies at the country's filling stations.

The move follows reported refusals from local banks to issue letters of credit (L/Cs) to BDCs to pay off their debts.

Presidential order

Ghana's president, John Dramani Mahama, has now ordered finance minister, Seth Tekper, to release US$60 million to the BDCs to secure sufficient fuel supplies.

This follows the BDCs reportedly refusing to supply filling stations in cities including the capital, Accra as well as Tema, Cape Coast and Kumasi.

Survival threat

The president issued his order "to enable the BDCs [to] obtain L/Cs so that we can prevent these queues at the filling station while discussions continue with the BDCs on long term solutions," according to information and media relations minister, Mahama Ayariga.

Local banks have declined to issue L/Cs to the BDCs to pay off their debts to their international suppliers on the basis that the fuel suppliers' debt threatens the banks' stability.

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