The Government of Ghana in a major downstream oil sector review has removed of fuel subsidy, to ensure stability across its downstream sector.
The Chief Executive Officer of Ghana National Petroleum Authority (NPA), Abdul Hamid, stated this during a presentation at the ongoing Africa Refiners and Distributers (ARDA) week 2023, in Cape Town, South Africa.
Abdul explained that the regulatory measure was in response to the global oil and gas market volatility caused by the Russian-Ukraine war and energy transition-related policies.
“For the first time in 30 years, we have installed fuel caps as a measure to intervene and to control market instability,” he said.
The cable reports that Abdul also spoke about the ‘gold-for-oil’ program, in which the country is leveraging its vast gold resources to buy petroleum from international markets.
“We exchange gold directly for petroleum products from international firms. We buy the gold directly from large and small mining firms and exchange it with petroleum. This has stabilised our industry and kept energy prices affordable,” he said.
The chief executive said the NPA has also created a special fund to help boost the capacity of refineries to meet the country’s growing demand.