Business in Ghana

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Posts Tagged ‘Kerosene’

Chinese Money, The New Safety Net

Posted by Business in Ghana on December 31, 2011

By Sydney Casely-Hayford, Sydney@bizghana.com

Two weeks on 11th December, I made the argument that Government had no choice than to raise fuel prices. https://thenewghanaian.wordpress.com/2011/12/11/expect-fuel-price-hike-soon/

I also said this would happen after Christmas or in the New Year and I predicted at least a 15% hike.  I was spot on.  December 29th, Government announced 15% increases in petroleum prices, except for Kerosene and Premix.  Both these subsidized fuels are “political fuels” used to stave off the inevitable rebellion by the poor but radical fisher folk. Read the rest of this entry »

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Expect Fuel Price Hike Soon

Posted by Business in Ghana on December 11, 2011

By Sydney Caasely-Hayford, Sydney@bizghana.com

A recent decision by an Accra High Court could have misunderstood the use of the Ex-refinery price differential In the calculation of fuel pump prices and this may force Government to raise retail pump prices if the National Petroleum Authority (NPA) loses its appeal and Government is mandated to carry out the court order.

Simply explained, the court ruled that the ex-refinery differential used in the calculation of the fuel prices is a form of tax and must therefore have Parliamentary approval before implementation.  The detail of the case is captured in a series of articles in most Ghana media.

If you delve a little deeper into the calculation of retail pump prices made available by the NPA and in the public domain, you notice that the ex-refinery differential is used to reduce the final pump price rather than increase it.  In effect, it is a subsidy not a tax. Read the rest of this entry »

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On Fuel Hikes and Petro-Economics

Posted by Business in Ghana on January 6, 2011

By Sydney Casely-Hayford, Sydney@bizghana.com

The Tema Oil Refinery (TOR) debt is a shifting target.  Without it’s interest element, the current principal debt is estimated at Ghc1.5billion.  This figure includes balances due to Ghana Commercial Bank (GCB), Barclays Bank, Standard Chartered Bank and other TOR notes raised on the commercial markets.  According to the Finance Minister Dr. Kwabena Dufuor, the balance due to GCB alone as at December 31, 2010 is approximately Ghc640million. Read the rest of this entry »

Posted in Oil and Gas, Sydney Casely-Hayford | Tagged: , , , , , , , , | 16 Comments »