Ghana has cut fuel subsidies and the price of petrol has now become GNp 175.48 per litre which is equivalent to 184 Naira per litre.
According to the head of Ghana’s National Petroleum Authority (NPA) the fuel subsidies were cut following an increase in crude oil prices and the depreciation of the Ghanian currency.
According to Reuters, Ghana, has come under increased pressure from the International Monetary Fund to remove the fuel subsidies.
The IMF has urged countries across West and Central Africa to cut fuel subsidies, which they say are not effective in directly aiding the poor, but do promote corruption and smuggling.
The past months have seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel.
Alex Mould said the cumulative effect of the rise in crude oil prices this year and the about 5.7 percent depreciation of the cedi meant a 25 percent increase in cedi terms in the cost of procuring crude oil and petroleum products since January.
Ghana’s Minister for Finance Kwabena Duffour said the removal of subsidies would have a positive impact on Ghana’s economy.
“Subsidising fuel is not sustainable,” Duffour told Reuters. “It is the right thing to do so we can sustain our fiscal consolidation.”
What do you think, is this good or bad for Ghana?