Fuel prices would not increase Immediately

ACCRA, September 22 -- The Deputy Minister of Mines and Energy, Mr Simon Abingya on Wednesday said there are no immediate plans to increase fuel prices despite the global hike in prices. He said while an increase in price is a prudent policy to pursue in the face of current problems in the sector, the long-term effect on the life of the average Ghanaian would be unbearable. "While we concede that the best way forward is to increase prices, we cannot stand the multiplier effects that it would have on the life of the average Ghanaian."

The Deputy Minister, who was addressing a press conference to throw more light on the fuel situation in the country, therefore, urged Ghanaians not to speculate or hoard fuel in anticipation of any future price increase.

On Monday, a diesel shortage resulted in long queues at filling stations all over the country, leaving most commuters stranded. He said it is the policy of the government to ensure fair and equitable distribution of petroleum products at uniform prices in the country.

Mr Abingya said recent shortages in some parts of the country were because of the refinery's inability to establish letters of credit and some operational bottlenecks, which made it impossible for it to supply about three million litres of fuel last week Friday.

He said the supply to the northern part of the country was disrupted because of the relocation of a pipeline. This, he explained, resulted in the congestion of tankers at the refinery but added that the problem was rectified and that the North can now be adequately served.

The ministry, he said, is doing all in its power to bring the current situation under control. On Monday, a total of 3.8 million litres of fuel was supplied, he said, and explained that the current demand and supply situation is not due to how much money the Tema Oil Refinery owes but to a utility problem.

He said naphtha, a penultimate product, cannot be processed and need to be exported to raise money to buy fuel but expressed the hope with the coming on line of the boiler the problem would be solved.

He said a total of 4.05 million barrels of crude oil would be required in the last quarter of the year. The country uses 1.35 million barrels of crude oil in a month. Mr Abingya assured Ghanaians that ships are on the high seas to discharge crude oil and about 110,000 tons of finished petroleum products.