Fuel price hikes: Cabinet commences deliberations over probable fuel subsidies
Fuel prices have cross the GH¢8 mark on March 1, 2022
Deputy Minister of Energy, Andrew Egyapa Mercer has said the National Petroleum Authority (NPA) has submitted a proposal on the recent price increase in petroleum products to the Minister of Energy for the consideration of the Government.
Read full articleThis he disclosed In an interview on the Joy Business report monitored by Ghanaweb.
The Deputy Minister in the interview said, “his Minister upon receipt of the proposal have submitted same to the Minister of Finance and is expecting that after reviewing by the Minister of Finance, whatever recommendations will be tabled for cabinet consideration and approval”.
He further added that we all ought to begin the conversation regarding subsidies because whatever decisions are taken; any subsidy payment will have to be paid for when the issue of the price at the global level reduces.
Touching on when a final decision could be made by Cabinet, Egyapa Mercer said “it is an ongoing process that has commenced with NPA submitting its recommendations to the Energy Ministry which has then forwarded it to Finance Ministry.
When the deliberations are concluded, Cabinet will then come out with the best decision that will be in the interest of all.
He indicated that an issue that could come up for conversation would be whether to suspend the deregulation policy to give the government more control over the setting of prices at the pump which would then mean that when the subsidies are incurred, Ghanaian consumers would have to be called upon the public at a later date or to proceed inter the current regime but with some modifications to cushion consumers. All options will be on the cards, he said.
Meanwhile, the prices of petroleum products have since the beginning of this year increased by about six times already.
This has impacted the cost of goods and services in the country with consumers grappling to pay for more for fuel products at various pumps. Also, as a result of ongoing tensions in Europe, coupled with the impact of COVID-19 on oil demand and supply chain constraints, Ghana’s local currency, the cedi has significantly been witnessing depreciation against other major trading currencies.
