FOOOOOL Soldiers LISTEN to Mahama, Fuel prices could go up soon General News of Sat, 27 Sep 2014 Fuel prices could go up soon The International Monetary Fund (IMF) has asked government to strongly consider scrapping subsidies on energy and petroleum products in order to contain the countrys ballooning budget deficit. The recommendation proffered after an IMF team led by Joël Toujas-Bernaté concluded its preliminary discussions with government on a possible intervention by the Bretton-Wood institution, could lead to an increase in energy and fuel prices. Already, Senyo Hossi, CEO of the Ghana Chamber of Bulk Oil Distributors- the lobbyist arm of bulk oil dealers- has asked Ghanaians to brace themselves for the fallout of an IMF programme that will eliminate subsidies on fuel products. Since the year began, prices of petroleum products have been adjusted upwards by four times, which sums up to about 40 percent as a result of the slide in the currency, which has fuelled inflationary pressures. However, the IMF has observed that due to the untargeted nature of the subsidies, it will be prudent for government to do away with the subsidies through what it called a “front-loaded fiscal consolidation.” Mr. Toujas-Bernaté said: “A more ambitious and front-loaded fiscal consolidation is needed to help place public debt on a sustainable path, and to allow monetary policy to be more effective in bringing down inflation, including by strictly limiting budget deficit financing by the Bank of Ghana.
Posted on: Sat, 27 Sep 2014 23:36:56 +0000
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