Residual fuel oil subsidy suspended by NPA

Residual fuel oil subsidy suspended by NPA

The National Petroleum Authority (NPA) has suspended the residual fuel oil subsidy (RFO), effective November 1, 2022.

According to a statement signed by Dr Mustapha Abdul-Hamid, the Chief Executive Officer of the NPA, the suspension of the policy to subsidise RFO is in accordance with the Ministry of Energy’s directive.

“The suspension of the policy to subsidise RFO is 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”, it added.

Currently, it is unclear how much the suspension of the subsidy on residual fuel oil (RFO) will affect the rise in petroleum prices.

Source: Energy Ghana

ENERGY GHANA MAGAZINE

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