The about 3 billion Ghana cedis debt has crippled the operations of some petroleum importers, and even commercial banks.
It has also affected the financial position of banks, making it difficult to give out loans.
Speaking at the maiden Ghana International Petroleum Conference organized by the Chamber of Bulk Oil Distributors, the Vice President said government understands how the delay is threatening the stability of the entire financial sector.
He noted that Government is aware of the financial cost created by the situation and is therefore working closely with the Central bank to ensure that the availability of forex matches demand.
“The debts undoubtedly create a serious strain on the financial sector, as it is known that banks have financed the debts and are currently stuck with Non-Performing Loans on their portfolio that needs to be provided for Government recognises that failure to settle the indebtedness will have a huge impact on their liquidity. We are therefore making arrangements to settle.”
The Vice President also noted that government is currently devising a national policy on LPG that aims to streamline activities in LPG production, transportation and use in a safe and standardised market.
Government has developed a plan for increasing LPG use in the country to ensure that by the year 2020, at least, 50 per cent of Ghanaians have access to LPG.
“We hope the private sector will invest in new LPG infrastructure to increase access and availability of the product to consumers, especially in rural areas”.
To achieve this target, he said Ghana needs to expand the existing 17,200 metric tonnes of storage to 100,000 metric tonnes.
He noted that the new market structure for LPG proposed in the policy would also require the setting up of a number of major refilling plants in the country.