Fuel price drop nothing to do with gold for oil policy – ACEP

  Thu, 16 Mar 2023
Oil and Gas Fuel price drop nothing to do with gold for oil policy – ACEP

The Africa Center for Energy Policy (ACEP) has insisted that the recent drop in fuel prices is due to a global drop in crude oil prices.

According to ACEP, the drop cannot be attributed to the government’s Gold for Oil policy.

At the commissioning of a new office complex for BOST, Vice President Dr. Mahamudu Bawumia alluded to the fact that the Gold for Oil policy has resulted in significant price reductions at the pump, much to the relief of motorists.

However, ACEP Executive Director, Benjamin Boakye believes the government should not take credit for the reduction.

“If you are really analysing how the pricing mechanics work, you would note that it has nothing to do with gold for oil policy. We are seeing prices on the international market drop. Indications are that, it is even going to drop further.”

The Ranking Member of Parliament’s Mines and Energy Committee, John Jinapor has also refuted the Vice President’s claim that the Gold for Oil Policy is to blame for the recent drop in fuel prices.

The Yapei-Kusawgu legislator claims that the decline is due to a drop in global market prices.

Vice President, Dr. Mahamudu Bawumia announced on Wednesday that consumers of petroleum products can expect further reductions in fuel prices at the pump as a result of the implementation of the Gold for Oil Policy.

However, in an interview with Citi News, John Jinapor stated that Dr. Bawumia’s conclusion is problematic.

“The Vice President is not being honest. In January, crude oil price on the international market US$97. 92 per barrel after dropping from about US$100. Now, it is about US$ 72 per barrel. So, if you have crude oil you can’t attribute it to your gold for oil”, he said.

— Citi Newsroom