Subsidy removal is the cause of petroleum product increment-NPA

Removal of fuel subsidy, depreciation of the cedi and the price of crude oil on the international market are the causes of the 23% increment in the petroleum price, says the National Petroleum Authority (NPA)

The Public Relations Officer of the Authority, Yaro Kasambata indicated that consumers must be prepared to bear the full cost of petroleum product since the government has redrawn its subsidies to the products.

Mr. Kasambata explained that the government has the greater picture at any time and determines if to give a pesewa relief on each product. If the government decides to pay, the Authority or the industry will not say no to it and otherwise.

Meanwhile, Deputy Energy Minister, John Jinapor said earlier that the increment is economically strategic in that at a level, it made economic sense to pass a bit of the cost to consumers so that the economy can be sustained and run other programmes.

 He added that the government is taking a critical approach to tackle the energy needs of the country because “we cannot continuously pay about GHC 400 million to them [BDCs] when we can also use the money to ensure that hospitals run and to ensure that other parts of the economy moves on.”

Earlier this month, the entire country was hit by petroleum shortage after the NPA indicated a price increase in the products.

Reports indicated that the shortage was caused by the government’s inability to pay its debts to Bulk Oil Distribution Companies (BDCs).

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