Fuel Prices To Go Up

.... NDC's campaign promise 'gone with the wind'
The Ghana National Petroleum Authority (NPA) will review fuel prices in reaction to world market increases in petroleum products.

The fuel prices is to increase by about 8% from the current prices. Petrol which is currently selling at GH3:40 could be sold for about GH3.80p from tomorrow.

Te public relations officer of NPA, Steve Larbi confirmed that fuel prices will definitely go up on Wednesday.

Fuel Prices Adjusted Upwards

(Chronicle) -- The Mills led administration might be walking the mine fields, risking earning early disaffection of the overly expectant voting populace as it looks on helplessly as fuel prices are adjusted upwards against the surging world crude prices.

Effective today, a gallon of petrol would be sold at GH¢3.86 and diesel GH¢3.90, indicating an increase of 10% and 2% respectively. Liquefied petroleum Gas (LPG) also surged to GH¢ 61.4 per kg from GH¢59.

Meanwhile prices of other petroleum products remained unchanged. The increase is the first this year and the highest for petrol since the government intervened to mitigate the impact of high fuel prices at the height of the energy crisis last year.

Government sources say the increase in prices was spurred by the rising trend of crude prices on the world market and that government has no intention to interfere with the operations of the pricing authority -The National Petroleum Authority, or absorb any extra cost after slashing taxes on petroleum products early this year.

The National Petroleum Authority ACT 691 was enacted by the Parliament of the Republic of Ghana to regulate, oversee and monitor activities in the petroleum downstream industry; to establish a Unified Petroleum Price Fund, and to provide for related purposes.

The pricing of petroleum products in the country was one of the major campaign tools the NDC wielded during the campaign promising it would reduce petrol prices when voted into power.

The first major review was effected last month when prices of all the major petroleum products were reviewed downwards by the NPA in line with the tax reduction proposed by government in the 2009 budget

On the international front, oil rose towards $49 a barrel on Tuesday, heading for its largest monthly and quarterly gain since June 2008, gaining a lift from rising stock markets and a weaker dollar.

Information gleaned from Reuters indicate that European stocks gained, following a rise in Asian stocks as some investors bet the worst stretch of corporate earnings damage may be over. A weak dollar.

"Oil is being propped up by firmer stocks and a modest rebound in the euro versus the dollar," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.

U.S. crude rose 55 cents to $48.96 a barrel by 0919 GMT. The contract settled down $3.97 at $48.41 a barrel on Monday. London Brent crude rose 82 cents to $48.81.

Oil's more than 9 percent rally in March has been prompted by rallying stock markets and lower oil supplies as the Organization of the Petroleum Exporting Countries cuts production.

The price is still down nearly $100 from the record high reached last year because the global economic crisis has eroded oil demand. Worldwide, demand is expected to contract in 2009 for a second consecutive year.

Further evidence of weakening demand came from Japan, the world's third-largest energy consumer, where crude oil imports in February fell 3.3 percent from a year ago.