TOR debt part of reasons for recent petroleum price review

Accra, July 15, GNA - The 30 per cent adjustment of petroleum prices by the National Petroleum Authority (NPA) on June 6, was informed by the upward movement of the price of landed petroleum products during the reviewed period.

Mr Emmanuel Buah, Deputy Minister of Energy, who made this known on Wednesday at the floor of Parliament said: "It is important to note that there was no change in taxes and levies during this review period. There was also no change in the Integrated Distribution Margin." The Deputy Minister who was responding to a question said the Tema Oil Refinery debt recovery was also a factor in the petroleum review. Mr Kwame Amporfo-Twumasi, New Patriotic Party (NPP) Member for Nkoranza South, enquired about the price build-up which led to the increment in petroleum products.

The Deputy Minister said the NPA's pricing formula for the ex-pump prices of petroleum products was as follows: the Import Parity Landed Price plus Government Taxes and Levies plus the Distribution Margin amounted to the ex-pump price.

The House later approved a 225.0 million dollar loan facility to finance the Transport Sector Project.

Various sectors would be covered under the project and out of that amount, 50.5 million dollars, would help in the rehabilitation and spot improvement of about 70 feeder roads in all the 10 regions. The Ministry of Roads and Highways would receive 4.2 million dollars to carry out feasibility studies related to its development programmes and sectors such as aviation, rail transport, the harbours and the Volta Lake Transport Company would also receive some support under the project.

Mr James Avedzi, Chairman of the Finance Committee of Parliament said the loan, which had a zero per cent interest rate with a 25 years repayment period, would go to support Ghana's bid to achieve the Millennium Development Goal.

He said this would be done through increasing the country's competitiveness in foreign trade, reducing internal transport costs and promoting linkages in domestic markets, which were crucial factors for rapid and sustained growth.