Gold-for-oil not responsible for decline in fuel prices – Dr. Acheampong

Dr. Theo Acheampong, an Economist and Political Risk Analyst has dismissed claims that government’s policy, Gold-for-Oil has led to a reduction in the cost of fuel prices.

According to him, by far, the policy is deviating from its intended purpose as cost of fuel from the policy is relatively higher than other sources.

Speaking on Joy News’ news analysis program, Newsfile, the economist explained that, contrary to the popular claim that fuel prices have reduced significantly due to the policy, prices for the gold-for-oil consignment are relatively higher compared to those from other sources of fuel.

Explaining his stance, he said, in terms of affordable pricing, other fuel sources like the Bulk Oil Distributing Companies (BDCs) have better and cheaper prices.

This he believes defeats the second goal of the Gold-for-Oil policy, thus to bring down prices of fuel at the pumps.

“As we speak, currently in the recent pricing window, the gold for oil product that came in are actually selling slightly higher than products that are on the market that the normal BDCs who are not participating in this policy programme, are doing,” he explained on Newsfile.

He added that, “Petrol under gold for oil is selling at about 9.6 cedis per litre and from the non-gold for oil sources are selling it at about 9.1 cedis per litre. So, you got almost like a 50 pesewa difference. Similar thing with diesel.”

For this reason, he dismissed claims that the gold for oil policy is the reason for a decline in fuel prices at the pumps.

The gold-for-oil programme is to allow government pay for imported oil products with gold in a direct barter with gold purchased by the central bank.

The move, announced by Vice President, Dr Mahamudu Bawumia will serve as an intervention to help stabilise prices of fuel products, as well as, reduce pressure on Ghana’s foreign exchange.

The first oil consignment arrived in January 2023.

EAN/WA