French oil giant Total-SL has in a press release on Tuesday raised huge concerns on the challenges they are facing in importing petroleum products into the Country.
The Company stated in the press release that, the current scarcity of foreign currency has forced them to accumulate a very high US Dollar debt which they noted is not good for their business.
The debt level Total says has put them at about 130% of their credit limit with their fuel suppliers and this they say has affected their capacity to import jet A1 fuel, Petrol and Diesel into the country for December, 2019.
The delay in the current government refunding the fuel subsidy of over two billion Leones in July 2018 they stated , has been fully reconciled and signed off with NRA and PRA in August 2018.
Total says, until they pay their overdue amount due to their suppliers they will not be able to bring any other products into the country.
They craved the indulgence of the government to help them access foreign exchange that will help them secure their ability to import products into the country for December 2019 and beyond.
Total has also disclosed that, they have suffered a loss amounting to over thirty eight billion Leones between January to June 2019, largely from the pricing formula as confirmed by the Petroleum Regulatory Agency (PRA) in July 2019.
The above mention loss according to the release,has threaten their profit and loss account for the year ending December 2019 as well as recording a FOREX loss of over twenty four billion as a result of the depreciation of the local currency and the high tax payable in US Dollars.
Total has also indicated that, they have a credit balance of over fourteen (14) billion Leones with the National Revenue Authority (NRA) being tax prepayment made prior to the implementation of the ASYCUDA World.
The release says, efforts at pushing through for the finalization of the reconciliation with NRA for some time now has failed and that such an amount was needed by the company for products uplifts and ease of cash flows.
The Chairman of the Petroleum Regulatory Agency, Balua Koroma has recently said in Freetown that, the lack of Government participation in the fuel distribution and supply chain process is very critical and worrisome for them as a Government.
The sector according to him, is hugely embedded by few foreign players.The PRA is working towards opening-up the sector to more players to discourage the current challenges inherent in managing the sector.
This is not the first time the country is facing fuel shortage.