Government to hedge purchase of crude oil

he Government has decided to hedge the purchase of the country’s crude Oil on the world market.

This follows recommendations by a Cabinet Committee charged to work out arrangements for the hedging of the country’s crude oil purchases.

The Petroleum Price Risk Management Programme set to commence next month could see the government insure the purchase of six million barrels of crude oil over the next 6 to 12 months.

This is expected to insulate the country from crude oil price volatility on the international market.

It will also ensure that the country doesn’t pay beyond a fixed maximum price for fuel over a period.

The Government will spend between 30 and 60 million dollars to finance the whole arrangement and is also hoping to use proceeds from the three-year cedi denominated bond to fund the program.