Government Clears Some TOR, VRA Debts

The government has so far made a total payment of 106 million dollars to the Volta River Authority and the Tema Oil Refinery (TOR) in respect of the debt accumulated under recovery.

The Minister for Energy, Dr Joe Oteng-Adjei, told Parliament last Friday that as at the end of 2008, the total debt accrued to TOR and other players in the Oil industry amounted to 437 million dollars, out of which TOR alone owed 106 million dollars.

Although the breakdown provided by the Minister does not tally with the total debt he gave, he explained that there was the liquefied petroleum gas component that he left out and promised to furnish the House with the detailed breakthrough at a later date.

He however, gave the breakthrough of the indebtness as: TOR, $106 million; bulk traders, $6 million; BOST $61 million, and VRA, 109 million.

Answering a question by the MP for Kwabre East, Kofi Frimpong, the Minister said since January 12, 2009 the refinery has been shut down for a turn-around maintenance and therefore did not incur any under recovery.

He explained that, under recovery occurs when the Government decides to interfere with the decision of the National Petroleum Authority with regard to pricing of petroleum products in the country.

Asked whether there has been any under recovery since the National Democratic Congress took office, Dr Oteng-Adjei replied in the Negative and explain that it is the policy of the current Government not to burden TOR and Oil marketing companies (OMCs) with any more debt.

Asked whether there will be any further fuel price increase following the continued rise of crude oil price on the world market, the Minister stated that until the NPA comes out with its review, which is done on a fortnight basis, he cannot speak on that issue.

Source: The Ghanaian Times