Dr. Bawumia's Gold-for-Oil policy has had no impact on the economy - Economist

Economist and lecturer at KAAF University, Dr. Eric Bempong, has refuted assertions that the government’s Gold for Oil policy, which is being championed by Vice President Dr. Mahamudu Bawumia, has had an impact on the price of fuel products in the country, and hence Ghana's economy.

Speaking in an interview on Oyerepa TV, on August 22, 2024, Dr. Bempong said that claims by proponents of the government that the hikes in the prices of fuel products would have been worse but for the Gold for Oil policy are false.

He explained that the main reason the price of fuel continues to increase in the country is because of the taxes the government has placed on them.

He added that if the taxes on fuel products are removed, it would decrease their prices, which would have a ripple effect on the economy.

“We haven’t felt the impact of the Gold for Oil policy. The increase in the price of fuel is because of the taxes and Gold for Oil has had no impact on it. They should be kind to us, they should be truthful with us. Call Duncan Amoah one day and ask him the number of taxes on fuel.

“The taxes on fuel products are a lazy approach successive governments have been using to raise revenue. Go and count the number of taxes on fuel; it is the reason why fuel is expensive. It is not because the price of fuel has increased in the world market. During the era of President Kufuor, the price of fuel on the world market rose to as high as $140 per barrel but he did something,” he said in Twi.

He added, “Now, how much is a barrel of fuel, it is about ($)82 and you are telling me that Gold for Oil is a solution. If the taxes are there, what would it change? If the taxes are removed, the fuel cost would go down, leading to the reduction in the price of goods and services.”

Watch a video of his remarks below:



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