Government’s plans for a 20% full year increase in civil service wages is likely to be implemented this month.

According to the "Daily Dispatch", until there is a massive shift in supply and demand dynamic of the oil trade, the possibility of an increase in petroleum prices is far-fetched.

Energy Minister, Albert Kan-Dapaah told the paper that the adjustment of prices of petroleum products to incorporate debt service surcharge (PDSS) was already in operation. The effect of the PDSS will only manifest itself when there is a windfall in saving arising from reduction of prices of crude oil.

Mr. Kan-Dapaah revealed that there are about 21 oil traders currently operating in Ghana who bid to supply the 15,000 barrels of oil everyday. This is in addition to the supply of 30,000 barrels of oil from Nigeria.

The Tema Oil Refinery (TOR) currently obtains 70 per cent after the refining of the 45,000 barrels of crude oil. Ghana therefore has to import the remaining 30 per cent.

The Energy Minister also revealed that the on-going renovation works at TOR would enhance the Refinery’s ability. He said once the renovation works are completed next month, TOR would get 100 per cent of the 45,000 barrels they would be refining daily.

The incorporation of the PDSS in the adjustment of prices of petroleum products, the automatic adjustment formula for electricity and water tariffs (due at the end of June, 2002) are part of the benchmarks in a 19-page letter of intent, memorandum of economic and financial policies submitted to the International Monetary Fund (IMF) by the government. Finance Minister, Yaw Osafo-Maafo signed the covering letter jointly with the Governor of the Bank of Ghana, Paul Acquah.

The plans for a 20 per cent increase in civil service wages were also contained in the 19-page letter referred to earlier. From the wording “a 20 per cent full year increase” implies a total increase of 20 per cent in course of the year 2002.