Gold-for-oil made no much impact; accounts for only 22% of total consumption – AOMC

Oil and Gas Gold-for-oil made no much impact; accounts for only 22 of total consumption – AOMC

The Association for Oil Marketing Companies (AOMC) says the real impact of the gold for oil policy cannot be truly assessed as products through the policy account for only 22% of the petroleum volumes at the pumps.

This follows comments by Vice President Dr Mahamudu Bawumia that the policy has resulted in a drop in fuel prices and assuring Ghanaians to expect a further drop in the next pricing window.

The Association while acknowledging the potential impact on the pricing of the products, noted that a better appreciation of the impact of the policy will depend on the policy accounting for at least 50% of the volumes of fuel at the pumps.

In an interview with Citi News‘ Hanson Aagyemang, the CEO of the association, Kwaku Agyeman-Duah tasked stakeholders to work towards increasing the number of volumes supplied through the policy.

“We have not been having a lot of fuel for everybody because the percentage for the total output is not that much so not everyone can get it. As we speak now, the supply so far constitutes just about 22 percent of the market, so 22 percent will not have so much impact vs the 78 percent on the other side, so it is a gradual thing.”

Meanwhile, the African 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.

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.”

-Citi Newsroom