Fuel price hike in Togo might increase smuggling - government

Accra (Greater Accra) - The Government on Monday expressed fears that recent increases in the price of petroleum products in neighbouring Togo might lead to increased smuggling of fuel from Ghana to that country.

An official statement issued in Accra reiterated the government's position to maintain current prices despite worldwide price hike and urged Ghanaians to appreciate its sacrifice by standing up against smuggling of the products.

The statement said authorities in Togo have not only increased the prices of fuel by 18 per cent but also removed subsidies on prices of petroleum products because of financial difficulties.

Current fuel prices in Togo make the product over 100 per cent more expensive than what obtains in Ghana.

The statement quoted the Togolese Ministry of Industry, Commerce and Development of Free Zones as citing an increase in the FOB price of petroleum from 259 dollars per tonne in January this year to 315 dollars per tonne presently, as being responsible for the government's austere measures.

Another factor that necessitated the government's measure, according to the Statement, is the depreciation of the country's currency, the CFA francs, which had within the same period fallen from 657 francs to 730 francs to the dollar.

World petroleum prices have soared to a ten-year record of more than 30 dollars a barrel, creating anxiety among consuming states, especially non-oil producing developing countries.