NDC North Tongu Deputy Communications Officer Exposes Gov't -Over Removal Of Subsidy On RFO

Deputy Communication Officer of the National Democratic Congress (NDC) in the North Tongu Constituency of the Volta Region, Mr Wilson Wisdom Adzedakor has exposed the dubious move by the government of President Nana Addo Dankwa Akufo-Addo to remove the subsidy on Residual Fuel Oil (RFO).

Residual Fuel Oil (RFO) is a low grade of fuel oil which contains the undistilled residue from atmospheric or vacuum distillation of crude

According to Mr. Adzedakor, the truth of the matter is that the Oil Marketing Companies (OMCs) have made huge losses in the month of October 2022.

This, he stressed was because of the increased in exchange rate and the estimate they used to price and the fact that bank of Ghana cannot guarantee them the phone exchange they would need which is about $480 million this month and next month to pay for the fuel we used in October. 

According to him, the importers (BDCs or BIDEC) buy fuel internationally and settle 60 days after bill of lading date

He maintained that normally what government would do is dip into the price stabilization levy fund and pay them the difference

He maintained that the price stabilization Levy fund is empty and as such the government has decided not to use it to subsidize RFO (fuel oil used by industry) anymore.