An increase in the oil prices plus the depreciation of the Ghana currency has led to cutting of the fuel subsidy in the former Gold Coast.

The Head of Ghana’s National Petroleum Authority said the country just joined the club of oil producers in West Africa last year, has come under increased pressure from the International Monetary Fund to remove the fuel subsidies.

The IMF has urged countries across West and Central Africa to cut fuel subsidies, which they say are not effective in directly aiding the poor, but do promote corruption and smuggling.

The past months have seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel.

The cumulative effect of the rise in crude oil prices this year and the about 5.7 percent depreciation of the cedi meant a 25 percent increase in cedi terms in the cost of procuring crude oil and petroleum products since January.

Mould, the Chief Executive Officer of the NPA, said Ghana has spent about 450 million cedis ($276 million) on fuel subsidies in 2011.