Oil Spill : Fuel companies face cashflow challenges

While the government is gradually making payments to reduce the P1 billion slate liability owed to the Oil Marketing Companies (OMCs), the fuel companies have had to turn to financial institutions for working capital. However, they are concerned that if this continues, it may affect their ability to source funds from lenders to ensure their ability to continue supplying fuel

Fuel industry players feel the outstanding balance of one billion in the oil slate owed by the government to oil marketing companies is squeezing the availability of working capital and their financial position, making it extremely difficult for thjem to secure supplies from the international market.

“As you may be aware, the Russia-Ukraine war has significantly disrupted global energy markets and is also having wider implications on other sectors and trade in general – agriculture, transport, etc,” said Dominic Dhanah, the Managing Director Puma Energy, in an interview.