TOR speculates oil price increase to be around 15%

Tema (Greater Accra) 29th Sept. '99 - There are speculations that any fuel price adjustment will be in the range of between 10 to 15 per cent of the current price, a source close to the Tema Oil Refinery (TOR) disclosed to the Ghana News Agency (GNA) today.

The source, which wants anonymity, said the increases in the world market price of crude oil since February has been drastic, and quoted last Friday's price of 20 dollars per barrel of brent crude which shot up to 23.49 dollars.

Nigeria is selling her oil at 30 cents above the international price.

It said TOR had recommended to the Ministry of Mines and Energy as far back as July, the need for increase in the price of fuel which they suggested should start from August, but this was ignored resulting in loss of revenue.

The source disclosed that TOR needs about 11 million dollars to establish letters of credit for the importation of crude oil. However, due to its weak finances, this has not been possible, the source said, adding that for the past few weeks, crude oil prices have shot up by 120 per cent.

It said the few hours of temporary fuel shortage yesterday shows how sensitive the product is to the Ghanaian economy, adding, that is why the government should be courageous to increase the current price of fuel to enable TOR procure crude oil.