Energy ministry justifies kerosene, premix fuel price increases

Energy ministry justifies kerosene, premix fuel price increases

John Jinapor, Minister of Energy and Petroleum

The Ministry of Energy and Petroleum says kerosene and premix fuel attracted the highest price increases in recent fuel price adjustment because subsidies on them were being exploited.

Last week’s fuel price adjustments saw kerosene and premix fuel recording the highest increases. Premix fuel which was selling at 66.82 GHp/lt increased by 19.94% as the pump price went up to 80.14 GHp/lt.

While kerosene which was being sold at 115.03 GHp/lt increased to 124.79 GHp/lt representing an 8.41% hike.

But speaking to journalists at the end of a three-day oil and gas sector training, Deputy Minister of Energy and Petroleum John Jinapor said 80% of subsidised kerosene are used for commercial ventures rather than for domestic use by the targeted poor.

“Research has indicated that only 20% of the subsidised kerosene gets to the final consumer in addition to that while we subsidise a gallon of kerosene at GH¢ 4, it is being sold at GH¢ 16 in the rural areas”, the Minister revealed.

He also added that 80% of susbsidised fuel finds its way back onto the market after they have been adulterated, which he said contributed to various mechanical problems in vehicles.

He noted that these issues have compelled government to instead invest in solar lanterns to assist the poor as against subsidising kerosene and pre-mix fuel.

He explained that the solar lamps are effective, last longer and can even be used to charge mobile phones, noting it is one of means of “bridging the communication gap”.

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