John Jinapor, the ranking member of the Parliament's Mines and Energy Committee, has criticized the government's "Gold for Oil" strategy for addressing the ongoing gasoline price increases.
According to Mr. Jinapor, the action will actually make the government's unmanageable debt load worse.
The gold being used in the sale should be priced in dollars as a function of a currency, the former deputy minister for power argues, much like oil.
On January 17, Mr. Jinapor indicated in an interview with Citi FM in Accra that the administration should proceed with caution.
This is a lazy man's method since the value of gold must first be stated in terms of money. "Unlike the actual barter that you are referring to, you cannot just say, "Take an ounce of gold and give it to me in exchange for a barrel of oil.
The purpose of currency or money, he added, is to the first value that gold in terms of dollars.
The purchase will have a negative influence on Ghana's budget, the Yapei Kusawgu MP stated.
"I'm not a prophet of doom, but from all the documents I've seen, this so-called Gold for oil arrangement is going to cause a debt problem," the speaker said. On Monday, January 16, the government received the first shipment of oil under the policy at the Tema Port.
Following that, Bulk Oil Storage and Transportation received 40,000 metric tonnes of oil from the United Arab Emirates (BOST).
BOST will next develop arrangements for its sale and distribution to the Oil Marketing Companies.
The action is a component of the government's attempts to lower gasoline prices and secure the nation's foreign exchange. Some Ghanaians, however, have expressed doubts about the government's capacity to uphold the strategy.
However, the Bank of Ghana allayed any worries by stating that Ghana had adequate gold for the transaction.
The nation has enough gold reserves, according to the Central Bank, to maintain the policy.
Stephen Opata, the Bank of Ghana's Director of Financial Markets, said this on Monday, January 16, during his appearance before the Public Accounts Committee (PAC).
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