Accra: Energy analyst Kwadwo Nsafoah Poku has raised concerns that the recent reduction in diesel prices could result in more than GHS1 billion in debt for Ghana's National Petroleum Authority (NPA). He highlighted that this price cut was achieved by reducing industry margins, which support essential activities within the petroleum sector, rather than through direct government funding.
According to Ghana Web, Poku elaborated on Eyewitness News that these funds traditionally support crucial services such as fuel transportation, price equalisation, product monitoring, and infrastructure development. Redirecting these resources to lower fuel prices might impose significant financial strain on the institutions responsible for these services.
Poku cited a past intervention that led to approximately GHS800 million in arrears at the NPA. He warned that the new measure could exacerbate the situation, estimating that the one-month price reduction might generate around GHS520 million in new liabilities, based on a diesel consumption rate of roughly 260 million litres per month. This could potentially elevate the NPA's total obligations beyond GHS1 billion.
He stressed that these debts are not directly borne by the government but will be recorded in the NPA's books, impacting regulatory activities and service providers within the value chain. Poku cautioned that this financial burden might eventually be transferred to consumers if future fuel price hikes are used to offset the accumulated debt.
While suggesting alternative financing options, such as utilizing additional revenue from crude oil price increases or reevaluating petroleum stabilisation strategies, Poku emphasized the need for solutions that do not introduce new financial challenges to the petroleum sector. He acknowledged the importance of reducing costs for consumers but urged for a well-planned approach to avoid financial destabilization.