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Business & Finance | May 24, 2004

Government Programs To Suffer, As ....

BUSINESS AND FINANCIAL TIMES

AS CRUDE OIL PRICES SURGES According to a senior government official, development programmes budgeted for the second half of this year is likely to suffer a slow down if crude oil price continue its upward trend.

World crude oil is currently at US $41 per barrel, having rippling effect on global economy and stock markets.

As a result of the unexpected price hike, which analysts anticipate will go up further unless remedial action is taken, government intend to finance the price differentials with the debt recovery levy, which hither to was budgeted for fuel cost recovery and the financing of development projects.

The move, though has its social and economic consequences and implications, analysts believe is lesser of two evils compared to petroleum price adjustment.

However, commentators including some political opponents, are all in favour of government's decision not to increase fuel prices, but maintained that the decision was more of a political gimmick than the interest of the Ghanaian populace.

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