Ghana nearly doubles fuel prices

Ghana's government has nearly doubled fuel prices in this West African nation to bring them in line with world markets and to help pay off the state-run oil refinery's massive debt.

Premium gas, which used to sell at 10,500 cedis (US$1.27) per gallon, will now cost 20,000 cedis (US$2.43), Energy Minister Albert Kan-Dapaah announced Friday. Kerosene and diesel will sell at 17,500 cedis (US$2.12), up from 8,800 cedis (US$1.07).

President John Kufuor's government has repeatedly stated the need to raise fuel prices to save the Tema Oil Refinery, which processes all of Ghana's crude oil imports. The refinery has accumulated more than 4 trillion cedis (US$485.6 million) in debt.

Kan-Dapaah said the increases will also make prices more "realistic" after recent hikes in world prices, and should help curb smuggling between Ghana and neighboring countries — particularly Ivory Coast and Burkina Faso — where prices are much higher.

To help cushion the effects, Kan-Dapaah said authorities were considering increasing salaries by at least 20 percent for civil servants — but not top officials, including the president or members of Cabinet.

The government also plans to increase the number of high-capacity commercial buses in circulation.

The fuel hikes come after a 12 percent increase in utility prices in the middle of last year.

The government alleges former President Jerry Rawlings delayed increasing fuel prices in order to win votes for his party in December 2000 elections.

The following are the new prices of petroleum prices announced by the government on Friday.
Premium 20,000 cedis a gallon Diesel 17,500 cedis a gallon Kerosene 17,500 cedis a gallon Marine Diesel 16,000 cedis a gallon Pre-Mix 16,000 cedis a gallon LPG 3,800 cedis per kilogramme
The new prices were announced by the Minister of Energy, Mr. Albert Kan-Dapaah at a press conference at the Ministry of Information. The press conference was attended by the Senior Minister, Mr J.H. Mensah, the Attorney-General and Minister of Justice, Nana Akufo-Addo, Minister of Information and Presidential Affairs, Mr. Jake Obetsebi-Lamptey.

Ghana's government has nearly doubled fuel prices in this West African nation to bring them in line with world markets and to help pay off the state-run oil refinery's massive debt.

Premium gas, which used to sell at 10,500 cedis (US$1.27) per gallon, will now cost 20,000 cedis (US$2.43), Energy Minister Albert Kan-Dapaah announced Friday. Kerosene and diesel will sell at 17,500 cedis (US$2.12), up from 8,800 cedis (US$1.07).

President John Kufuor's government has repeatedly stated the need to raise fuel prices to save the Tema Oil Refinery, which processes all of Ghana's crude oil imports. The refinery has accumulated more than 4 trillion cedis (US$485.6 million) in debt.

Kan-Dapaah said the increases will also make prices more "realistic" after recent hikes in world prices, and should help curb smuggling between Ghana and neighboring countries — particularly Ivory Coast and Burkina Faso — where prices are much higher.

To help cushion the effects, Kan-Dapaah said authorities were considering increasing salaries by at least 20 percent for civil servants — but not top officials, including the president or members of Cabinet.

The government also plans to increase the number of high-capacity commercial buses in circulation.

The fuel hikes come after a 12 percent increase in utility prices in the middle of last year.

The government alleges former President Jerry Rawlings delayed increasing fuel prices in order to win votes for his party in December 2000 elections.

The following are the new prices of petroleum prices announced by the government on Friday.
Premium 20,000 cedis a gallon Diesel 17,500 cedis a gallon Kerosene 17,500 cedis a gallon Marine Diesel 16,000 cedis a gallon Pre-Mix 16,000 cedis a gallon LPG 3,800 cedis per kilogramme
The new prices were announced by the Minister of Energy, Mr. Albert Kan-Dapaah at a press conference at the Ministry of Information. The press conference was attended by the Senior Minister, Mr J.H. Mensah, the Attorney-General and Minister of Justice, Nana Akufo-Addo, Minister of Information and Presidential Affairs, Mr. Jake Obetsebi-Lamptey.