Government’s Gold-For-Oil Policy Has No Hand In Recent Drop In Fuel Prices – ACEP Challenges VEEP

Government’s Gold-For-Oil Policy Has No Hand In Recent Drop In Fuel Prices – ACEP Challenges VEEP

The African Center for Energy Policy (ACEP) has noted that the government has no hand in the recent reduction in fuel prices.

The energy think-tank is of the opinion that the government’s Gold-For-Oil policy has nothing to do with the drop in fuel prices.

This reaction from ACEP is in response to Vice President, Dr. Mahamudu Bawumia’s claim that the government’s Gold For Oil has resulted in a significant reduction in the prices of fuel at the pump.

The Vice President made this assertion on Wednesday, March 15, 2023 when he commissioned the new office complex of the Bult Oil Storage and Transportation (BOST) in Accra.

But the Executive Director of ACEP, Mr. Benjamin Boakye is of the view that the Vice President’s claim cannot be substantiated. He insisted that a careful analysis reveals that the drop in prices at the various pumps is mainly due to the drop in international market prices of crude.

He further disclosed that there are indications to show that prices are going to drop further on the international market which can translate to the pumps.

“If you are really analyzing 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,” Mr. Benjamin Boakye explained.

Former Deputy Minister for Energy under the erstwhile Mahama administration, John Jinapor has also corroborated the standpoint of ACEP. He also insists that the government’s Gold For Oil Policy cannot take credit for the drop in prices.

The Member of Parliament of Yapei-Kusawgu and the ranking member on the Energy and Mines Committee of Parliament, therefore, questioned the honesty of the vice president.

Mr. John Abdulai Jinapor who reacted to the claims on Accra-based Citi TV noted that, “the Vice President is not being honest. In January, crude oil price on the international market was 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.”

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