Gov't starts paying P1.2bn arrears to oil companies
Friday, June 22, 2018
Several highly-placed oil sector insiders told BusinessWeek that government last week wrote to the four oil companies asking for audited sales volumes – the traditional sign that payments are imminent.
Between December 2016 and now, the local oil industry has been in a state of under-recovery – where pump prices are below actual prices incurred by oil companies in importing fuel. The National Petroleum Fund (NPF), which, among other duties, collects levies from motorists and is supposed to support the subsidy by paying the oil companies, is on its knees. For every litre of fuel motorists pay for, 13.5 thebe is remitted by oil companies to the NPF raising hundreds of millions of Pula annually, but the Fund only had P98 million as at March this year. Perennially threadbare, the NPF’s troubles have been worsened by its highly publicised legal troubles, involving an alleged P230 million money laundering criminal case.
The Ministry of Agriculture, local producers, retailers, and industry associations must work together to overcome the obstacles hindering vegetable production and distribution.This collaborative approach is essential to improve the availability, quality, and affordability of vegetables in the market.Firstly, the Ministry of Agriculture should provide support and guidance to local farmers to enhance their productivity and efficiency. This could...