The accumulating debt of the troubled Tema Oil Refinery forced the government to slash fuel subsidies, leading to a near doubling of the prices for oil and gas.
The government has laid the blame on external events that have pushed the international price of oil up significantly in recent months, but that has not prevented a significant public outcry, raising concerns that the government might face a popular backlash.
However, some relief is in sight, as the government reached agreement on a three-year, $245 million PRGF with the IMF in late January, contingent upon the passage of a satisfactory budget for 2003.
In a bid to better insulate the economy from future external oil price shocks, the government is increasing its efforts to explore for oil within its own borders, and is considering selling off its stake in the refinery in order to pay off the huge debt.
The accumulating debt of the troubled Tema Oil Refinery forced the government to slash fuel subsidies, leading to a near doubling of the prices for oil and gas.
The government has laid the blame on external events that have pushed the international price of oil up significantly in recent months, but that has not prevented a significant public outcry, raising concerns that the government might face a popular backlash.
However, some relief is in sight, as the government reached agreement on a three-year, $245 million PRGF with the IMF in late January, contingent upon the passage of a satisfactory budget for 2003.
In a bid to better insulate the economy from future external oil price shocks, the government is increasing its efforts to explore for oil within its own borders, and is considering selling off its stake in the refinery in order to pay off the huge debt.
