By John Ikani
The Ghana National Petroleum Authority (NPA) has announced that the country will be phasing out fuel subsidies as part of measures to ensure stability in the downstream sector of the oil industry.
Abdul Hamid, the CEO of NPA, made this known during a presentation at the ongoing Africa Refiners and Distributors Week 2023 in Cape Town, South Africa.
According to Hamid, “the Ghanaian government has eliminated energy subsidies through the NPA.”
He explained that “the removal of subsidies and deregulation of the markets have led to more investment in the private sector, which has in turn boosted the industry, resulting in a more stable market without supply complaints.”
Hamid stated that the government’s inability to provide subsidies led to industries shutting down.
He added that “the NPA is now ensuring affordability and security for vulnerable consumers through the removal of energy subsidies.
“This is part of the reforms implemented by the NPA to improve the sector.
“These plans were put in place in response to global oil and petrol market volatility caused by the Russian-Ukraine war and energy transition policies.”
Hamid disclosed that for the first time in 30 years, fuel caps have been installed as a measure to intervene and to control market instability.
In addition, “the NPA has established a special fund to assist refineries in increasing their capacity to 50 barrels of oil in order to meet the country’s growing demand.”
This fund is part of the NPA’s efforts to improve the downstream sector and ensure that the country has a stable and reliable energy supply.
