Ghana sees increase of petrol prices

by Florence Gbolu and Gifty Korantemaa
04-10-05

The National Petroleum Authority (NPA) reviewed the prices of petroleum products, increasing premium and gas oil by 4.9 % and 6.6 % respectively. Whilst the prices of kerosene and liquefied petroleum gas (LPG) remained unchanged that of premix was reduced by 4.8 %. Announcing the review, the NPA stated “In arriving at the new ex-refinery prices, the Authority reviewed the price developments on the world oil market, prices of the finished product imports as well as the operations of the Tema Oil Refinery.”
The NPA explained that “Crude oil prices increased from $ 60 per barrel in August to an all time high of $ 70 per barrel in September as a result of the two hurricanes, Katrina and Rita, that hit the US Gulf coast.” The statement explained further “Even though The Tema Oil Refinery (TOR), has continued to show improvements in its efficiency, the country has had to import a little more refined products than otherwise would have been necessary dueto routine maintenance operations at TOR.”
The NPA stated that lower cost of operations by TOR, as well as the stability of the cedi, combined to mitigate the impact the increases on the world market. “All the same their lower costs helped to mitigate the price increases that the world market prices alone would have called for in the fourth quarter. The exchange rate of the cedi also remained stable during the period. These factors have combined to reduce the impact of the increases in the international crude oil prices on the local market,” it continued.
“The calculations by the National Petroleum Authority indicate changes in the ex-refinery prices of some of the products. While that of Premium and Gasoil went up by 9.3 % and 9.2 % respectively that of Premix came down by 6.7 %.” “The ex-refinery prices for all the other products however, remain unchanged,” the NPA concluded.
Source: Ghanaian Chronicle Online