Dr. Theo Acheampong, an Economist and Political Risk Analyst, has criticized the gold for oil policy, saying that it does not bring down the prices of fuel at the pumps, which is its primary objective.
He noted that the prices of gold for oil consignment are higher compared to those from other sources of fuel, and the Bulk Oil Distributing Companies (BDCs) that did not sign up for the policy are selling fuel at lower prices. For example, petrol under gold for oil is selling at about 9.6 cedis per litre, while non-gold for oil sources are selling it at about 9.1 cedis per litre.
Dr. Acheampong dismissed claims that the gold for oil policy is responsible for the decline in fuel prices at the pumps, arguing that what drives the price at the local level is a function of the international price and crude oil price, which is the function of the exchange rate.
He reiterated that the drop that we are seeing cannot be entirely attributed to the gold for oil policy.
However, the Deputy Energy Minister, Andrew Egyapa Mercer, disagreed with Dr. Acheampong’s comments, saying that the price of fuel on the market is a margin game, and there is a cap within which the Oil Marketing Companies (OMCs) and the BDCs operate. He added that the recent decline in petroleum products has nothing to do with government’s gold for oil program.
Vice President Dr. Bawumia had earlier stated that the country would save $4.8 billion annually from the ‘Gold for Oil’ policy, which began this year, and is expected to reduce the prices of petroleum products at the pumps.
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The policy is in its third month, and according to the Vice President, it is already yielding positive results. However, the Deputy Minority Leader, Emmanuel Armah Kofi Buah, refuted the Vice President’s assertion, stating that the decline in fuel prices is due to the global fall in crude oil prices and has nothing to do with the gold for oil policy.
