GRi Business, Economics & Finance 04 – 02 - 2003

Accra bourse inches up in moderate trading

Current petroleum pricing formula might be reviewed

Northern Region Customs fail to meet target

Inter-bank exchange rates

 

 

Accra bourse inches up in moderate trading

 

Accra (Greater Accra) 04 February 2003- The main index of the Ghana Stock Exchange (GSE) inched up in moderate trading on Monday, although institutional investors continued to stay away from the market.

 

The GSE All-Share index gained 0.72 points to end the day at 1,435.42 points. Traded shares were up slightly at 607,100 shares compared with 582,400 shares on Friday with nine of the 24 listed equities selling shares

 

On the broader market, there were six positive gainers with no loser. British American Tobacco, Patterson Zochonis and Unilever gained one cedi each at 1,101 cedis, 2,016 cedis and 4,863 cedis respectively.

 

Guinness Ghana Limited was up by seven cedis at 1,110 cedis, Ghana Commercial Bank appreciated by two cedis at 3,672 cedis and SSB Bank also gained two cedis at 4,154 cedis. Market capitalisation was up at 6,408.11 billion cedis from 6,407.84 cedis at the previous close. The change for the year remained at 2.87 per cent.

 

The following are the last prices of listed equities in cedis:

ABL                        390

AGC                  28,000

ALW                  3,700

BAT                    1,101                 +1

CFAO                     67

EIC                     4,600

FML                   1,800

GBL                       551

GCB                   3,672                  +2

GGL                   1,110                  +7

HFC                   1,200

MGL                      254

MLC                      272

MOGL              19,730

PAF                       750

PBC                       390

PZ                       2,016                 +1

SCB                  28,700

SPPC                    387

SSB                   4,154                  +2

SWL                     285

TBL                   4,850

UNIL                 4,863                 +1

CMLT                  460

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Current petroleum pricing formula might be reviewed

 

Accra (Greater Accra) 04 February 2003- Kwame Owusu, Special Adviser to the Minister of Energy, said on Monday that the current fuel pricing system might undergo a review in three months after its announcement.

 

The review is necessary to assess the performance of the new pricing system and to find out if the world price of crude oil would have come down to enable the Petroleum Tender Board to incorporate the amount for the payment of the debt at the Tema Oil Refinery.

 

Speaking to the GNA in an interview, Mr Owusu admitted that the Ministry of Energy has a formula that could incorporate a total of 530 cedis on a litre of fuel to pay the TOR debt in 10 years.

 

He said if government had added the amount to pay the debt to the current price, it would have pushed the price of petrol to 23,000 cedis. "That would have been too much for the people to bear."

 

He said the Ministry is waiting for some time before going to Parliament for the review and possibly the addition of the debt payment, which is already incorporated in the current formula.

 

The GNA interviewed the Special Adviser on the possibility of reducing the price of LPG to encourage its use, and Mr Owusu said if the price of any of the petroleum products has to be reduced at the time of the review, it would have to come about through cross subsidies.

 

He explained cross subsidies to mean a reduction in the price of one product for subsequent addition to another product.

 

The interview by the GNA followed concerns expressed by a section of the public that there was the need for the government to reduce the price of LPG, a by-product of crude refining, to serve as an incentive for people to use the product instead of relying on fuel wood and charcoal which has been contributing to the depletion of the country's forests.

 

Owusu said apart from cost recovery, the current petroleum pricing formula enables the Tema Oil Refinery (TOR) to spread the total cost of production on each of the products that comes out of the refined crude oil.

 

He expressed the hope that despite the situation in Iraq and Venezuela other oil producers would produce more crude oil to reduce the world market price. He said this would enable TOR to record total cost recovery and at the same time pay off the debt.

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Northern Region Customs fail to meet target

 

Tamale (Northern Region) 04 February 2003- The Custom Excise and Preventive Service (CEPS) in the Northern Region collected a total of 20.6 billion cedis as against 45.6 billion cedis revenue targeted for 2002.

 

The Service, however, exceeded its revenue target on import duties by collecting 676.5million cedis as against 396 million cedis, representing an increase of 70.84 per cent It also improved its Value Added Tax (VAT) on imports to 116.1 million cedis as against the targeted figure of 103.9 million cedis, representing 11.71 per cent increase.

 

E.R.K. Lanyon, Northern Regional Commissioner of CEPS, disclosed this in an interview with the GNA in Tamale on Monday.

 

He said the CEPS failed to meet its target on petroleum taxes, collecting only 19.8 billion cedis as against a target of 45.1 billion cedis, representing a shortfall of 56.06 per cent.

 

The Commissioner attributed the shortfall in petroleum taxes to the inability of the Volta Lake Transport Company (VLTC) to transport the petroleum products from Akosombo to the depot at Buipe due to the low level of the Volta Lake.

 

The Buipe depot serves the three Northern Regions. Lanyon said the six major companies that were lifting oil for the three regions had to transport the commodity by road with difficulty, adding that the state of emergency imposed on Dagbon had affected import traffic.

 

He said the Northern Region, which had enjoyed brisk business in import traffic, was now not the first option for most traders especially the eastern corridor of the region had been neglected because of the conflict in the area.

 

He noted that because of the crisis in Cote d'Ivoire, there has been an increase in inter-state road transit trade in the region and his outfit has intensified its monitoring and surveillance on the vehicular movement to ensure that un-customized goods, as well as small arms, are not discharged in the region.

 

On smuggling, he said the region was so much alive with it and mentioned cigarettes, textiles electronic equipment, and motorbikes as commodities that were being smuggled across to Togo and Cote d'Ivoire.

 

Lanyon explained that smuggling is thriving in the region because of the openness of the area, where there are several footpaths leading to the borders, making it virtually impossible for the security personnel to man all of them.

 

He mentioned inadequate staffing logistics, health facilities, good roads, as well as lack of potable water and electricity as some of the factors militating against the efficient operations of the Service in the region.

 

Lanyon said his outfit would embark on a tax educational campaign this year to sensitise the people on the need to pay their taxes regularly.

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Inter-bank exchange rates

 

Accra (Greater Accra) 04 February 2003

 

Currency                      Buying             Selling

U.S. Dollar                     8,368.82 cedis             8,567.91 cedis

Pound Sterling              13,735.74                    14,067.65

Swiss Franc                    6,105.59                      6,248.68

Canadian Dollar              5,500.46                      5,603.21

Danish Kroner               1,206.16                      1,234.49

Japanese Yen                      69.45                           71.08

South African Rand         981.05                        1,000.86

Euro                              8,974.09                      9,185.54

CFA Franc                         13.68                            14.00

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