Ghana’s petroleum downstream regulator, NPA, has suspended the subsidy on residual fuel.
According to a letter signed by Dr Mustapha Abdul-Hamid, CEO of NPA, and sighted by energynewsafrica.com, the suspension took effect from Tuesday, November 1, 2022.
The decision is in line with a directive from the Energy Ministry as an interim measure to lessen the financial burden on the Price Stabilization and Recovery Account (PSRA).
Residual fuel oil is a liquid or liquefiable petroleum product that is used to generate heat or power.
“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,” a letter signed by Dr. Mustapha Abdul-Hamid said.