The minority caucus in Parliament has expressed concern over the government’s decision to raise the expected average cost of gas, warning that this will inevitably lead to higher electricity tariffs.
The expected average cost of gas will increase from the current $7.836 per MMBtu to $8.458 per MMBtu.
This change will be reflected in the upcoming major tariff review by the Public Utilities Regulatory Commission (PURC).
Additionally, subsidies for industrial gas provided to some ceramic companies will be withdrawn.
Speaking to the media, the Minority argued that this increase will place an additional burden on Ghanaians through higher electricity bills.
Former Information Minister, Kojo Oppong Nkrumah, referred to the move as a setback to the hopes of resetting energy pricing.
“Every three months, light bills will go up. Now this quarterly adjustment with no policy intervention from the NDC government will mean, as I mentioned, an increase in electricity tariffs every three months. Worse is that the government clandestinely removed the subsidies on gas that is made available to the IPPs.”
“Remember, because the government was subsidizing, the pricing was at about $7.08 dollars per MMBT. If you listen to the minister in the budget, he says gas prices have been increased.
He hid the fact. The fact is that the NDC government has withdrawn the subsidy. And that is why the price has gone up now to $8.04 dollars per MMBT. This gas is what is used by the IPPs to produce power and then we’ll pass on the cost to us. So in effect, two things are happening. It’s a double warning.”
” Not only are electricity prices going to go up every three months, it will be going up at a higher rate from now.”
