Ghana Govt Quietly Reintroduces Fuel Subsidies

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Ghana’s government quietly reintroduced fuel subsidies in April, and has spent about $85 million since then in extra payments, the head of the Chamber of Bulk Oil Distributors (CBOD) told Reuters on Friday.

 The subsidies were scrapped early last year in a bid to reduce the budget deficit and restore macro-economic stability in Ghana.

 The reintroduction has not been publicly announced and senior government officials were unavailable for comment.

 The chamber’s chief executive, Senyo Hosi, also told Reuters that Ghana’s reserves of oil for domestic consumption normally stand at around four weeks.

 The reserves have fallen to just one week, because banks are refusing to extend credit to importers due to outstanding government payments. (Reuters/NAN)

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