Industrial firms in the country have agreed to take the full charge for the price of Residual Fuel Oil (RFO) to enable sustainable supply without any government subsidy.
This is a resolution agreed with the Association of Ghana Industries (AGI) and the National Petroleum Authority (NPA) after it emerged that the product was in a short supply due to government’s inability to pay the subsidies on time.
Addressing the media, the Head of Economic Regulation at the NPA, Abass Tasunti said the decision will ensure adequate supply of the RFO in the country.
“We have engaged the AGI and the resolution is that the subsidy must be suspended temporarily so that they can get the products to run their operations which will be better than using alternative sources thus diesel which is more expensive”.
He is of the view that this will also mean that industry players will be able to pay for the full cost of the products and have it in the market.
Government has been subsidizing RFO for industries and the premix fuel for fishermen as a move to support their operations and boost industrial growth.
The new directive to remove the subsidy has been occasioned by ongoing increase in the fuel as a result of geopolitical reasons and the fall of the local currency in recent times.
The product is however not having any effect on the day to day running of transportation cost since it is only a special fuel for industrial machines used by few companies in the country.
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