GH¢2 diesel relief could leave NPA with over GH¢1bn debt — NPP's Kwadwo Nsafoah Poku
Energy analyst Kwadwo Nsafoah Poku has warned that the government's GH¢2.00 per litre diesel relief could leave the National Petroleum Authority (NPA) with more than GH¢1 billion in outstanding liabilities if the cost of the intervention is not reimbursed.
Speaking on Eyewitness News on Wednesday, August 5, Mr Nsafoah Poku said the temporary reduction in the regulatory margin would create significant financial obligations for stakeholders in the downstream petroleum sector, with the burden ultimately reflected on the NPA's books.
His comments follow President John Dramani Mahama's directive to reduce the regulatory margin on diesel by GH¢2.00 per litre for one month to cushion consumers against rising fuel prices. The measure, which took effect on Tuesday, August 4, applies exclusively to diesel unless extended or revised.
Mr Nsafoah Poku noted that a similar intervention in the past left the NPA with approximately GH¢800 million in unpaid obligations. He cautioned that maintaining the current relief for another month could add about GH¢520 million to that figure.
He explained that Ghana consumes an estimated 260 million litres of diesel each month, meaning the GH¢2.00 reduction would result in an additional liability of roughly GH¢520 million.
“The last time the GH¢2.00 was removed on diesel, the debt that sat at the NPA was GH¢800 million. They are doing it again for another one month, which will consume roughly about 260 million litres of diesel. That is about GH¢520 million. When you add that to the previous GH¢800 million, that is over GH¢1 billion debt that is going to sit at the NPA,” he said.
He further warned that motorists and consumers could eventually bear the cost of the intervention when global fuel prices ease, as authorities may introduce future price adjustments to recover the accumulated debt.
“What is going to happen down the line is that when prices probably recede, you and I will be asked to pay a little bit more to recover that debt,” he stated.