Business News of Friday, 18 January 2013

Source: myjoyonline

Consumers spared fuel price increase

Consumers have been spared an imminent increase in fuel prices after government absorbed the associated cost.

A source at the National Petroleum Authority told Joy Business fuel prices should have gone up today between 10 and 30 percent as per their bi-monthly review policy.

The current local prices are still based on the 2011 world market price of 105 dollars, and not to the current 110 dollars.

This is expected to cost government about 4 million cedis, and about 2 billion cedis this year if it continues with the subsidy policy.

But Energy Economist, John Peter Amewu tells Joy Business the time has come for government to review this policy.

Government currently owes some oil importers about 300 million Ghana cedis out of the 1 billion cedis it should have paid out to subsidize fuel prices last year.

The state currently subsidizes about 30 percent for every litre consumed.