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.
“We have removed subsidies and deregulated our markets. Industries were shutting down because the government was finding it hard to find the money to provide subsidies and to this day industry is being powered by investments in the private sector and there are no complaints of supply.
“We are ensuring affordability and security for the vulnerable consumers through the removal of energy subsidies,” he said while speaking on more reforms implemented in the NPA.
He disclosed the plans were implemented in response to the global oil and gas market volatility caused by the Russian-Ukraine war and energy transition-related policies.
“For the first time in 30 years, we have installed fuel caps as a measure to intervene and to control market instability,” he disclosed.
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.