NPA indefinitely suspends subsidy on Residual Fuel Oil effective November 1
The National Petroleum Authority (NPA) has announced the indefinite suspension of subsidies on residual fuel oil (RFO).
The suspension of subsidies on residual fuel oil, the NPA notes in a statement issued on Tuesday, November 1, is in line with the directive from the Energy Ministry to ease the financial burden on the Price Stabilisation and Recovery Account (PSRA) as an interim measure over concerns of the sustainability of the PSRA to meet under-recovery payment obligations for Premix Fuel and RFO.
Residual fuel oil is one of the lowest-value petroleum products from a refinery.
It is essentially a by-product of producing the light products that are the primary focus of a refinery.
The primary end use for residual fuel oil is as a fuel in simple furnaces such as power plants and industrial boilers.
It is also the primary fuel used on ocean-going ships, where it is called bunker fuel.
In Ghana, it is known as Premix Fuel and mainly used fishermen.
Read details of the statement below:
Suspension of Subsidy on Residual Fuel Oil Effective 1st November 2022
