The Tema Oil Refinery (TOR) has reduced its losses from 1.3 trillion cedis to 84 billion cedis.

The refinery has also targeted to start making profits from next year, Dr Yaw Akoto, Chief Executive of the TOR announced at the inauguration of a 10-member Board of Directors of the refinery at Tema on Wednesday.

This achievement was due to the upward adjustment of fuel prices in February this year to enable the refinery achieve full cost recovery in its operations.

Dr Akoto, however said TOR's debt stock level stands at 2.8 trillion cedis as at June this year and blamed this on inadequate pricing in the past, depreciation of the cedi last year and financial charges incurred over the years.

Dr Akoto appealed to the government to assist the refinery reduce its debt by continuing with the import price parity policy and also considering financial measures like petroleum bonds.

He said the refinery's expansion programme, which is already 91 per cent complete will be finished in April 2002 to enable the refinery to export fuel.

The economics of the refinery will also change positively next year to attract private sector participation in its operations.

Dr Akoto urged the board to be fast in the decision making process and use whatever influence they have to get the company out of its financial mess.

Mr Kan-Dapaah announced that no decision has been taken to privatise the TOR as being speculated.

He said, however, that there is an on-going debate that the utility companies like the refinery ought to be privatised.

Mr Kan-Dapaah urged the board members to consider the issue critically and show the government the way forward.

The Minister said his ministry is collaborating with the Ministry of Finance for a proper financial restructuring of TOR to enable it to recover the full cost of its operations.

He urged Ghanaians to bear in mind that subsidies, especially when they are unfounded can cause serious financial losses for the company.

Such subsidies, which were forced on the refinery contributed to the debt of 2.8 trillion cedis and the Ministry would, therefore, not interfere unnecessarily in the operations of TOR to further worsen its plight.