Deputy Minister of Energy Andrew Egyapa Mercer has revealed that Cabinet has begun discussions on possible subsidies on fuel after prices hit GHS8.00 per litre.
Andrew Egyapa Mercer said the subsidy could come at a cost to the taxpayer but it will be a relief to consumers.
He stated that a recommendation from NPA and the Ministry has been submitted through the Minister of Finance for consideration
"So if that decision is taken that government has to subsidize fuel, we all have to know that issues being resolved prices coming down and whatever amount that government will have expended will still have to be paid by all of us so we need to have a conversation to see where we all can get some equilibrium that gives us all comfort. But there is a price for whatever decision."
Fuel prices at some fuel stations continue to rise, crossing the GHS 8 per litre mark in the first week of March 2022.
This is expected to have a ripple effect on other Oil Marketing Companies, which will also adjust their prices upwards.
Only two weeks ago, fuel prices averaged GHS6.4 per litre as the Price Stabilisation and Recovery Levy (PSRL) was reinstated by the National Petroleum Authority.
The Chamber of Petroleum Consumers’ (COPEC) Executive Secretary, Duncan Amoah, said he had expected the increase to be much higher.
“What Total is currently quoting, GHS8.29 is on the downside. The market figures could have been somewhere around GHS8.70 at this time,” he said on Eyewitness News.
He suggested further that the Oil Marketing Companies may be taking a hit on the recent increase in fuel prices.
“It is quite certain the Oil marketing Companies and the BDCs are themselves taking a shave in the sense that the Cedi is doing so badly at this point,” Mr. Amoah noted.