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Use accumulated funds from Price Stabilization Recovery levy to subsidize fuel – Minority tells govt

The Member of Parliament for Yapei Kusawgu John Jinapor has asked the government to use parts of the petroleum resources to subsidize fuel.

He also said the government can rely on accumulated funds from the Price Stabilization Recovery Levy, to support Ghanaians in this difficult moment.

Addressing a press conference on the rising cost of fuel in Ghana, in Parliament on Wednesday November 2, the former Deputy Minister if Energy said “In this difficult moment if it means government has to use part of petroleum resources to subside fuel, let them do that.

“Moreover, there is a price stabilization recovery levy, it is there to subside fuel, it has accumulated a lot of money and they should apply that money.”

He further said the removal of subsidy on residual fuel by the National Petroleum Authority (NPA) is meaningless.

In his view, this does not affect petroleum in any way.

The NPA announced to the general public, particularly stakeholders in the oil marketing sector, that the subsidy on residual fuel oil (RFO) has been suspended.

“The suspension of the policy to subsidise RFO is 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),” a statement issued by the Chief Executive of the Authority, Dr Mustapha Abdul-Hamid, said.

The decision took effect from Tuesday, November 1.

“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.”

Mr Jinapor said “It is meaningless, the suspension of the application of the subsidy on residual fuel does not affect petroleum prices in any way.

“If you want to reduce petroleum prices it is the price stabilization. If you say that you want to apply it to a certain category but another category, it doesn’t affect petroleum prices at all.”

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