Accra Hit By Fuel Shortage

Accra, Ghana(PANA) - The Ghanaian capital, Accra, has been hit by artificial fuel shortage, resulting in winding queues of vehicles at the city's fuel stations, a situation officials blame on "panic buying" by motorists in anticipation of future price hikes.

The week-end shortage, which has had little effect on commercial and business activity in the capital, is partly as a result of the inability of Tema Oil Refinery, the country's sole refinery to obtain letters of credit for the discharge of gasoline at the weekend, officials were quoted as saying.

"This, coupled with the anticipated increase in the price of fuel as announced by the Bulk Oil Storage and Transport Company mid last week prompted panic buying of fuel early this week by fuel consumers and dealers," Veronica Wiredu, chief director of the Mines and Energy Ministry told the Ghana News Agency Monday.

She said as at Friday morning Tema Oil Refinery was finding it difficult to obtain the letters of credit to enable it to discharge gasoline, which had then arrived.

However, she assured "the situation is under control things will normalise during the week."

The Bulk Oil Storage and Transport Company, a deregulated agency, announced 20 percent hikes in fuel prices in mid-September, the fourth in the year. Two weeks ago, the company warned of another increase petroleum prices, citing world market factors.

Wiredu said the warning by the company was only meant to explain what is happening at the international market.