Government suspends subsidy on Residual Fuel Oil

Government through the National Petroleum Authority has suspended the subsidy on Residual Fuel Oil (RFO) until further notice. The move is expected to take effect on Tuesday November 1, 2022. The petroleum regulator in a letter to industry players explained the suspension falls in line with the directive from the Ministry of Energy as an interim measure to ease the financial burden on the Price Stabilisation and Recovery Account (PSRA). “The Policy directive takes into consideration the growing concern about the sustainability of the Account to meet under-recovery payment obligations for Premix Fuel and RFO,” the letter signed by NPA CEO Mustapha Abdul-Hamid read. “NPA will therefore continue to compute and announce the price build-up (PBU) of RFO for each pricing window, as it has always done, to the industry” it added. Meanwhile, the letter was distributed to all Oil Marketing Companies and Bulk Import Distribution and Export Companies (BIDECs) in the country. It was also copied to the Minister at the Ministry of Energy, the Ministry of Finance, the Industry Coordinator, Association of Oil Marketing Companies, CEO of Ghana Chamber of Bulk Oil Distributors (CBOD), the Coordinator, Unified Petroleum Price Fund (UPPF), NPA and Chief Executive Officer of the Association of Ghana Industries. MA/FNOQ Watch the latest episode of BizTech below: