Petrol prices go up to help state refinery

ACCRA, Oct 1 (Reuters) - Ghana on Friday raised petrol prices following the increase in world oil prices, with energy sector officials saying the move was essential for the viability of the state-owned Tema Oil Refinery.

Kwabena Donkor, acting managing director of the Bulk Oil Storage and Transportation Company Ltd (BOST), said petrol would now cost 1,070 cedis ($0.40) per litre, up from 970 cedis.

Gasoline rose to 1,000 cedis from 910 per litre and kerosene to 750 cedis from 670.

Donkor told a news briefing: ``Tema Oil Refinery is in a critical situation and must be brought in a position to recover its costs.''

If prices were not increased it would result in huge losses for the refinery and could lead to its bankruptcy, he said.

Louis van Ejik, chairman of Shell Ghana Ltd, told Reuters the increase was ``bad news for all parties concerned, above all the customers.''

``However, this was unavoidable in view of extremely high world oil prices and necessary to ensure the financial survival of the refinery,'' he added.

($ - 2,670 cedis)