The shortage of fuel in major towns across the country has re-ignited the debate over fuel subsidies.<\/p>\n
Though \u00a0President John Mahama\u2019s instruction to the Finance Ministry to release $60 million to defray the GHC 1.8 billion owed the Bulk Oil Distribution Companies (BDCs).<\/p>\n
For The Integrated Social Development Centre (ISODEC), the removal of subsidies will lead to higher fuel prices and could have undesirable effects on the economy.<\/p>\n
The Campaign Coordinator of ISODEC, Dr. Steven Manteaw, insists it will mean higher transport cost for most workers and higher food prices all of which adversely affect the poor.<\/p>\n
He recalled that in 2013, government promised to use the proceeds from the removal of fuel subsidies to cushion the poor in society \u201cbut we are yet to see any such intervention.\u201d<\/p>\n
Dr. Manteaw suggested that government needs to take in account \u201cwhy subsidies are said not to have real impact on the poor\u201d adding that the situation could be attributed to the unavailability of concrete statistics on Ghanaians which prevents government and other stakeholders \u201cform targeting the poor with subsidies and other social interventions.\u201d<\/p>\n
But the former National Identification Authority (NIA) Boss, Dr. William Ahadzie disagrees.<\/p>\n
The Social Policy Analyst said he is convinced that fuel subsidies have not achieved its purpose and thus, needs to be removed.<\/p>\n
According to him, Ghanaians must be made to pay the full cost of petroleum products \u201cbecause there are other ways of supporting groups that will experience harsh effects of such subsidy withdrawal.\u201d<\/p>\n
Dr. Ahadzie added that if people are not able to afford fuel, it will ease traffic congestion and people will patronize public transports.<\/p>\n
\u201cI still believe in mass transit. If I don\u2019t get the fuel, I\u2019m going to go by public transport,\u201d he said.<\/p>\n
He continued saying, \u201cif there were an efficient mass transit system, consumption per capita will be much, much less.\u201d<\/p>\n
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By: Efua Idan Osam\/citifmonline.com\/Ghana
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