Ghana Removes Fuel Subsidy as Nigeria Sets June Date to End Subsidy
- The Ghanaian government said that it had ended fuel subsidies in the country
- The country said the move is part of its strategy to implement reforms in the downstream oil sector
- Nigeria has set a June date for the removal of petrol subsidies and free up funds for infrastructure
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The Ghana Petroleum Authority (NPA) has announced that it has ended subsidies for petrol in the country.
The subsidy removal is part of Ghana’s implemented regulatory steps to ensure stability across its downstream sector.
Source: Getty Images
Ghana’s Chief Executive Officer for NPA, Abdul Hamid, disclosed the information in South Africa at the ongoing Africa Refiners and Distributors week 2023.
Hamid said:
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“We have removed subsidies and deregulated our markets. Industries were shutting down because the government was finding it hard to find the money to provide subsidies. To this day, the industry is being powered by investments in the private sector, and there are no complaints about supply.
“We are ensuring affordability and security for the vulnerable consumers through the removal of energy subsidies,” he said while speaking on more reforms implemented in the NPA.
“For the first time in 30 years, we have installed fuel caps to intervene and control market instability,” he disclosed.
Punch reports that the NPA has also created a special fund to help refineries boost their capacities to 50 barrels of oil to meet Ghana’s growing energy demand.
Nigeria sets date for subsidy removal
Nigerian has set a June date for the removal of the petrol subsidy.
The development comes as Nigeria’s Minister of Finance, Budget, and National Planning blamed the petrol subsidy for Nigeria’s massive budget deficit, stating that the country needs to end subsidies as soon as possible.
According to reports, Ahmed stated this in a meeting with Voice of Nigeria as the Nigerian government plans to educate the citizens on why it must end subsidies in June.
She said President Buhari would formally announce subsidy removal before he exits office on May 29, 2023.
NNPC reveals how much petrol will cost when the subsidy is removed next year
Legit.ng earlier reported that according to the NNPC, the average daily fuel importation between January and August 2022 was 68 million litres which it pays N297 per litre to subsidize.
A statement by the company said the total volume of petrol imported into Nigeria was 16.46 billion litres since January 2022 and translated to a supply of 68 million, a BusinessDay report said.
The company stated that it imported about 22.35 billion litres in 2021, reaching 61 million litres per day.
Source: Legit.ng
