Ghana Removes Fuel Subsidy

02 Jan 2012

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NPA, Ghana, Alex Mould

The Ghanaian government last week announced the removed fuel subsidies, following an increase in crude oil prices and the depreciation of the Ghanaian currency – the cedi.

Reuters had quoted Ghana’s Head of National Petroleum Authority (NPA) to have said this in a statement. Ghana, which joined the club of oil producers in West Africa last year, had come under increased pressure from the International Monetary Fund (IMF) to remove the fuel subsidies.

The past months had seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel.

Chief Executive Officer, NPA, Ghana, Alex Mould  had said the cumulative effect of the rise in crude oil prices this year and the about 5.7 per cent depreciation of the cedi meant a 25 per cent increase in cedi terms in the cost of procuring crude oil and petroleum products since January.

Mould had explained said Ghana had spent about 450 million cedis ($276 million) on fuel subsidies in 2011.

Ghana's Minister for Finance Kwabena Duffour, had said the removal of subsidies would have a positive impact on Ghana's economy.

UBA’s HoldCo Structure
Shareholders of United Bank for Africa (UBA) Plc, last week approved its plan to restructure into a financial services holding company (holdco).

THISDAY had reported that the approval, which was given by the shareholders at a court- ordered meeting  in Lagos, would enable UBA comply with the new licensing regime of the CBN.

UBA Plc will operate a new structure, where a non-operating company to be listed and known as UBA Holdings Plc, will become the parent company of three intermediate holding companies namely; United Bank for Africa Plc, UBA Africa Holdings Limited and UBA Capital Holdings Limited.

The Group Managing Director/Chief Executive Officer of UBA, Mr. Phillips Oduoza, had said UBA Plc would remain a listed entity on the Nigerian Stock Exchange.

He had explained: “Existing shareholders will cede 60 per cent of their holding in UBA Plc for 100 per cent ownership of UBA Holdings Plc. In addition, UBA Plc will divest its ownership of African banking and non-commercial banking subsidiaries to UBA Africa Holdings Plc and UBA Capital Holdings Plc.  These two entities will in turn be wholly-owned by UBA Holdings Plc.”

Tags: Africa, Business, Fuel Subsidy, NPA

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  • Good for them. At least they've stable electricity. How many people or organisation use electric generator? It wont be reasonable to compare Nigeria with Ghana!

    From: Toyin z

    Posted: 4 years ago

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  • In naija, do we've the statistic of how many petrol engine electricity generator are in use for Homes

    From: Toyin

    Posted: 4 years ago

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  • Nobody will compare Ghana with Nigeria bcos there are no cabals like nija, all the institutions are working perfectly... I mean their power sector, medical, education, basic infrastructures etc. So the citizenry won't feel the impact of the fuel subsidy removal. But what nija, nothing among these things I mentioned is working, so...

    From: Ali

    Posted: 4 years ago

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  • one can only pray dat our leaders are sensitive to d needs of d commoners and jettison d jamboree spending on themselves only or how else can one describe d huge budgetary provisions for our leaders when d rest of us cannot eat 3 square meals? callous ofcourse!

    From: Abdulrazaq

    Posted: 4 years ago

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  • This appears to be the purpose behind the recent visit of the IMF Boss to Africa. When will African leaders wake up?

    From: DEliezer

    Posted: 4 years ago

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  • Nigerians are too greedy, no one in ghana is complaining, or threatening to bomb themselves after removal of wasteful fuel subsidy, only in naija that people would complain about buying gas for less than about 1 dollar. We never prepare for the future in this country. We only think about right now, what about your future and the future of your grandkids? Fuel subsidy removal would go a long way o alleviate infrastructural development, so lets be patient. Suffer now and enjoy later, not enjoy for now and die a horrible death later

    From: naija247

    Posted: 4 years ago

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  • Nigerians will always have a way to complain, how many of you pay electric bill? how many illegal connections and how do you want electricity if the money is paid to you as subsidy? Ghana pays about 10% of what Nigeria pay, grow up morons and stop complaining about town like say na una own bad pass

    From: Stanley

    Posted: 4 years ago

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