World market will continue to determine ex-pump prices-Minister

Accra, Nov. 17, GNA - The ex-pump prices would continue "to be determined largely by the world prices of crude oil," Mr Kofi Adda, Energy Minister told parliament on Friday.

He said the policy guiding the importation and refining of crude oil was to" maintain import parity and full cost recovery for the petroleum product."

"The deregulation of the sector is to ensure a competitive environment for private sector participation in a liberalized market," he said.

The Minister was responding to a question in parliament on measures being taken to contain ex-pump prices of crude oil in the face of rising cost of oil and petroleum products on the international market. Mr Adda said improvements in the "efficiency of the refinery operations, the competitive nature of the private sector, as well as the investment priorities of the country will also affect the levels of ex-pump prices."

In answer to another question, the Minster said it was not true that the national grid could not be extended to the Volta Islands communities.

"The grid can be extended but it is extremely expensive and relatively more complicated," he said. The Minister was responding to a question from Mr Francis Osei-Sarfo, NDC-Krachi West, on plans to extend solar lighting systems to the Volta Island communities and places where the national grid could not be extended.

The Minister said the use of solar lighting systems was part of an overall policy of increased use of renewable energy whose implementation was being reviewed to "give strategic support to the traditional sources of power supply in the country." 17 Nov. 06