The country’s Bulk Oil Distribution Companies (BDCs) have welcomed the removal of subsidies on petroleum products describing it as a move in the right direction.
The National Petroleum Authority (NPA) revealed the removal of subsidies on petroleum products after the announcing an increment in the price of the products.
The BDCs have long advocated for the removal of subsidies which they say, was unsustainable due to the huge debts owed them by government.
The Chief Executive Officer (CEO) of the Chamber of Bulk Oil Distributing Companies, Senyo Horsi told Citi News, the move by the NPA is commendable.
“I think it’s a very bold step towards revamping funding confidence in the industry which we all know has been a major reason why we’ve had several challenges for a while now,” he said.
Horsi acknowledged the concerns of consumers but was quick to add that the continuous supply of the product should be paramount.
“We need to get the product onto the market and we also need to appreciate the fact that it’s not sustainable for government to carry on debts that is unbudgeted for,” he noted.
He revealed that the continuous subsidization of the product will pose a systemic risk to the banking sector which will affect all consumers.
Mr. Horsi encouraged the general public to rather commend the government for taking the bold step instead of criticizing and complaining about the increment.
Fuel prices have been increased by 23% while that of transport fares have been adjusted upward by 15%.
The public and some social commentators have criticized the government for burdening Ghanaians with the decision to scrap the payment of subsidies.