Government’s 17 percent subsidy on LPG will be scrapped for consumers to bear the full cost of the commodity by the end of 2013.

Making the announcement, Isaac Tagoe, Technical Director, National Petroleum Authority (NPA), said the subsidy on LPG would be scrapped gradually.

He explained that the subsidy would be removed “slowly” so that consumers would adjust to the new procedure.

Mr. Tagoe was speaking at the appreciation day of the Union Oil Ghana Limited held in Kumasi.

He debunked accusations that consumers of petroleum products were paying full cost following the recent increases in fuel prices.

Mr. Tagoe said the recent increases in fuel prices doesn’t mean the NPA and Tema Oil Refinery (TOR) are inefficient.

Charles Obeng Mensah, CEO, Union Oil Ghana Limited, cited lack of financial support from banks as some challenges confronting young companies in Ghana.

He appealed to banks in the country to support young companies grow their businesses.