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Kerosene, premix and LPG still subsidised

Thu, 23 Jan 2003 Source: GNA

The Ministry of Energy said on Thursday that the new petroleum prices announced last week still contained some element of cross-subsidy in favour of kerosene, pre-mix fuel and LPG. A statement signed by the Public Relations Officer, Ms Florence Boakye said the government was constrained to keep the price differential between petrol, kerosene and pre-mix as minimal as possible.

This is because the sale, distribution and availability of these fuels have been subject of abuse by unscrupulous commercial and private persons and dealers. These people had taken advantage of the subsidised prices of kerosene and pre-mix to, among other things, adulterate petrol and diesel fuels for sale to unsuspecting motorists and other users. "The benefit, especially, to rural and fishing communities for which the price subsidy was intended is therefore, lost through the misapplication of the fuels for unintended and illegal purposes to the detriment of the very people government had sought to assist.

The statement said the government has concluded that regular availability of kerosene and pre-mix should be assured. The Ministry confirmed that the National Kerosene Distribution Programme, which involves the free supply of surface tanks and dispensing equipment, is being steadfastly implemented with the assistance of the district assemblies. The statement said the ministry has taken steps to further ensure the constant flow of these critical fuels to the needy communities by the oil marketing companies and other accredited agencies. It said random field inspections would continue to be conducted and offenders would be prosecuted.

Source: GNA