Financial burden on PSRA forces govt to suspend indefinitely subsidy on Residual Fuel Oil

NPA develops robust regulations to sanitise lubricants market
Chief Executive (CE) of the National Petroleum Authority, Dr. Mustapha Abdul-Hamid

The government has suspended the subsidy on Residual Fuel Oil (RFO) until further notice, effective November 1, 2022.

Informing the Industry of the suspension of the policy, the National Petroleum Authority (NPA), said the move was 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,” the letter stated.

NPA will therefore continue to compute and announce the price build-up (PBU) of RFO for each pricing window, as it has always done, to the industry, the letter signed by the Chief Executive of the NPA, Mustapha Abdul-Hamid stated.

The letter was distributed to All Oil Marketing Companies (OMCs) and All Bulk, Import, Distribution and Export Companies (BIDECs) and copied to the Minister, Ministry of Energy, Accra; Minister, Ministry of Finance, Accra; The Industry Coordinator, Association of OMCs (AOMCs), Accra; The Chief Executive Officer, Ghana Chamber of Bulk Oil Distributors (CBOD), Accra; The Coordinator, Unified Petroleum Price Fund (UPPF), NPA, Accra and The Chief Executive Officer, Association of Ghana Industries, Accra.

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