Business in Ghana

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Posts Tagged ‘Fuel subsidies’

Charades in Acid. Critical News, 24th May 2015

Posted by Business in Ghana on May 25, 2015

Sydney Casely-Hayford,

This past week, we murdered a prominent politician, and our Finance Minister attempted a charade explanation of the economy.

Some sort of in fighting within the NPP created resentment and pent up sentiment that some person(s) decided the only way to settle this was to do an acid test on a human being. Gregory Afoko, brother to NPP National Chairman Paul Afoko was picked up by the police even as they investigate the matter. Some other person who could be his accomplice run away and has still not been found.

On his deathbed, Mr. Adams Mahama identified the two persons as his attackers.

Ghana has a history of political violence. We fought the British for independence, fought ourselves for independence and jailed, killed, maimed and deprived people of their livelihoods, all in the name of independence.

We also created a one party state in an attempt to annex all political control and in the after-process, staged a series of coup d’tats to show the world how confused we can be when it comes to violent democracy.

And all this violence has led to so much circumspection of our plight as a black people, we even turned lights off in Dansoman, where prominent actress, Yvonne Nelson, now famous for her #dumsormuststop night vigil was said to have been disconnected for illegally connecting her power supply. Read the rest of this entry »

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Most developing countries will benefit from oil price slump, says World Bank Group

Posted by Business in Ghana on January 12, 2015

WASHINGTON, January 7, 2015 Gains from low oil prices can be substantial for developing-country importers if supported by stronger global growth, says a World Bank Group analysis of the oil price decline, contained in the latest edition of Global Economic Prospects.

The decline in oil prices reflects a confluence of factors, including several years of upward surprises in oil supply and downward surprises in demand, receding geopolitical risks in some areas of the world, a significant change in policy objectives of the Organization of the Petroleum Exporting Countries (OPEC), and appreciation of the U.S. dollar. Although the relative strength of the forces driving the recent plunge in prices remains uncertain, supply related factors appear to have played a dominant role.

Soft oil prices are expected to persist in 2015 and will be accompanied by significant real income shifts from oil-exporting to oil-importing countries. For many oil-importing countries, lower prices contribute to growth and reduce inflationary, external, and fiscal pressures.

However, weak oil prices present significant challenges for major oil-exporting countries, which will be adversely impacted by weakening growth prospects, and fiscal and external positions. If lower oil prices persist, they could also undermine investment in new exploration or development. This would especially put at risk investment in some low-income countries, or in unconventional sources such as shale oil, tar sands, and deep sea oil fields. Read the rest of this entry »

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Posted by Business in Ghana on June 21, 2014

By Matthew Mpoke Bigg,

ACCRA, June 20 (Reuters) – Ghana’s government reintroduced fuel subsidies in April, without announcing the move, and has spent around $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, a country that exports oil, gold and cocoa and has seen five years of rapid economic growth.  The reintroduction was not publicly announced and senior government officials were not available for comment.

But the CBOD’s chief executive Senyo Hosi said the fuel importers his organisation represents know about the subsidies because they show as a line in the pricing structure they regularly receive from the National Petroleum Authority (NPA).  “From April 16, they have been doing that massively …. The government has spent roughly $85 million in fuel price subsidies in the second quarter which is not accounted for in the budget,” he said, citing NPA figures.  The new subsidies are around 13 percent of the combined total of the global market price plus the amount added by government in taxes and levies, he said. T he full cost to the government, however, may be higher once the impact of the currency depreciation is taken into account.  Other industry sources, who asked not to be identified, confirmed the reintroduction of the subsidies. Read the rest of this entry »

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A Better Subsidy Agenda. Critical News, 17th February 2013

Posted by Business in Ghana on February 17, 2013

Sydney Casely-Hayford,

Last Sunday night, Government announced increased fuel prices 15% to 20%.  No proper announcement and no formality.  We woke up, some to Church, others to play a sport or two, others to write a column.  Stopped by the petrol station only to be told that the pump prices have gone up.  Calibration not yet in place, prices not displayed, you depended on the attendants to calculate on a piece of paper and you were told how much to pay.  This did not include jet fuel, of which there is a strident shortage.  Someone most likely got a tip-off and gouged some profit and the rest of us idiots were left in the dark.

In the run up there had been a lot of noise about lifting fuel subsidies again and a repeat of all the arguments to do and not to do.  I heard a very novel argument by Kofi Bentil of Imani at the CiTi Fm radio show.  He offered that, though he was a strong advocate to remove subsidies, because he and many other Ghanaians could not trust that Government would put the “savings” to proper use, leave the subsidies in place. Read the rest of this entry »

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Nigeria Fuel Subsidy End Raises Protest Fears

Posted by Business in Ghana on January 2, 2012

The Nigerian authorities have announced the start of a controversial plan to scrap fuel subsidies – which is expected to push up petrol prices.

The government has spent more than $8bn (£5.2bn) on the subsidies in the past year and says it will use some of the money to improve infrastructure.

Labour unions have called for “mass protests”. Read the rest of this entry »

Posted in Oil and Gas, Uncategorized | Tagged: , , , | 1 Comment »

Expect Fuel Price Hike Soon

Posted by Business in Ghana on December 11, 2011

By Sydney Caasely-Hayford,

A recent decision by an Accra High Court could have misunderstood the use of the Ex-refinery price differential In the calculation of fuel pump prices and this may force Government to raise retail pump prices if the National Petroleum Authority (NPA) loses its appeal and Government is mandated to carry out the court order.

Simply explained, the court ruled that the ex-refinery differential used in the calculation of the fuel prices is a form of tax and must therefore have Parliamentary approval before implementation.  The detail of the case is captured in a series of articles in most Ghana media.

If you delve a little deeper into the calculation of retail pump prices made available by the NPA and in the public domain, you notice that the ex-refinery differential is used to reduce the final pump price rather than increase it.  In effect, it is a subsidy not a tax. Read the rest of this entry »

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