The abolition of fuel subsidies in the nation has been announced by the Ghana National Petroleum Authority.
As part of the regulatory measures the nation has put in place to guarantee stability in its downstream sector, the subsidy has been eliminated.
This was stated by Abdul Hamid, the Chief Executive Officer of NPA, during a presentation at the currently taking place Africa Refiners and Distributers week 2023 in Cape Town, South Africa.
According to Hamid, the NPA on behalf of the Ghanaian government has also eliminated energy subsidies.
“We have cut back on subsidies and opened up our markets. Industries were closing down because the government was having trouble raising the funds to offer subsidies. Now, industry is supported by private sector investments, and there are no supply issues.
He stated that by eliminating energy subsidies, “we are assuring affordability and security for the disadvantaged consumers” while discussing additional reforms carried out by the NPA.
He said that the plans were put into action in response to the policies surrounding the energy transition and the global oil and gas market volatility brought on by the Russian-Ukrainian war.
In order to intervene and regulate market instability, we have installed fuel caps for the first time in 30 years, he revealed.
In order to fulfill the nation’s expanding need, Hamid continued, the NPA has also established a special fund to help refineries increase their capacity to 50 barrels of oil.