Bulk oil distributors laud gov’t’s decision to scrap petroleum subsidies

The Chamber of Bulk Oil Distribution Companies has lauded government’s decision to scrap subsidies on petroleum products in the country.

However, the decision has caused up to 26 per cent increment in the price of fuel products and consumers have started feeling the brunt since Monday.

New figures announced by the NPA Sunday prompted a 15 per cent rise in transport fares.

The Chief Executive Officer of the Chamber, Senyo Hosi told Joy FM Monday evening that government has taken a very good step and that the funding confidence with the banks would be re-established to help provide constant supply of fuel on the market.

He indicated over GHc93 million would be lost if government did not make such a decision.

He noted that even though the hue and cry of consumers was understandable, they should find ways of bracing themselves for the ensuing challenges.

He said ‘The less we become dependent on it, the better it is actually for our foreign exchange because you remember, almost, everything is imported.’

Moses Asaga, the Chief Executive Officer of the National Petroleum Authority (NPA), earlier this month confirmed to Joy News the government was planning to remove subsidies on petroleum products.

He then assured that the removal of the subsidies would be done in a gradual manner so that the ordinary consumer would not be impacted negatively.

He stressed the action had become necessary because the government could no longer bear the huge cost of subsidizing petroleum products while other critical sectors of the economy yearn for resources.

From yesterday July 14, 2014, the price of petrol (premium) increased up to 23.08 per cent, meaning a litre of the commodity, which formerly sold at GH¢2.73 per litre, now sells at GH¢3.36.

Kerosene also saw a sharp boost of 23.75 per cent and diesel, 22.01 per cent. The latter, now sells at 327.00 pesewas at the pumps.

Premix fuel, which inched up by 25.60 per cent, now sells at GH¢1.57 per litre.

While liquefied petroleum gas (LPG) saw an increase of 15.68 per cent. It now sells at GH¢3.32 per litre.

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