The National Petroleum Authority (NPA) has given government up to December 2013 to remove the current subsidies on LPG, Petrol and diesel.
The authority says the about 20% subsidy each on petrol and diesel and the 66% on LPG is not sustainable due to the current demand on the market.
Judging from the prices of crude on the world market, government is expected to cough out GHC 2.4 billion as fuel subsidies.
The Chief Executive Officer of NPA, Alex Mould disclosed this at the Citi FM’s roundtable discussion of fuel subsidies on Monday.
He stated that “what the NPA is asking are two things…the subsidies be removed and two, that the NPA be allowed to every two weeks, do the calculation and pass that on to the consumer.”
According to him, when other companies increase the price of their products, much is not heard about it as compared to increase in prices of fuel.
He said: “We don’t talk about whether Nestle is increasing Milo price…we don’t talk about MTN, we don’t talk about why prices are increasing in certain areas, but when it comes to petrol, everyone turns to NPA as if NPA is the demon.”
Mr. Mould explained that his outfit just “does the calculation” and called on government and Ghanaians “to decide whether they want subsidies and if they want subsidies, they should put it in the budget and should make sure it is funded.”
This he noted will make the suppliers and the financial institutions with a stake in the sector to become aware that “we are subsidizing and we are paying our subsidies and we want fuel in the country at the right price; there is no cheap fuel as some people have evilly misconstrued.”