The National Democratic Congress-NDC (Minority group) in Parliament has dismissed assertions by the Nana Addo's government that, the gold for oil deal will lead to a reduction in fuel prices in the coming days.
The group alleged that the oil was purchased at a premium rather than a discount and will not amount to a drop in fuel prices.
The government took delivery of 40,000 metric tons of the first consignment of the gold for oil deal on January 15 with the expectation of reducing the pressure on forex and also presenting the country with cheaper fuel.
But speaking to journalists, the Ranking Member on the Mines and Energy Committee of Parliament, Honourable John Abdulai Jinapor revealed that, the transaction is rather worsening the situation.
In his recent comments, honorable Jinapor revealed that; “As they claimed that this gold for oil deal will lead to fuel price reduction, fuel prices are going up and the information I have is that the oil they bought was bought at a premium and not as a discount, so this narrative that they are going to get cheap oil somewhere is not true".
Honorable John Jinapor; who is also the National Democratic Congress Member of Parliament for Yapei-Kusawgu constituency (in the Savannah Region) added that, “There is nothing like cheap oil when it comes to international oil trading. On the contrary, this deal is leading to a premium in terms of the pricing so the notion that oil prices will go down is untrue. The diesel covers only 25 percent of our diesel requirement. So that is not even enough to change the price”.
Background:
The Government of Ghana has finally reached an agreement with petroleum refiners in the United Arab Emirates to supply the West African nation with petroleum products beginning January 2023 under the gold for oil initiative.
Under this initiative, the Government of Ghana will be using gold to exchange for refined petroleum products instead of using US dollars to pay for the products.
The move is part of the Akufo-Addo administration’s effort to address the situation where oil importers chase dollars for oil import, thereby, putting pressure on the local currency, the cedi.
Vice President Dr. Bawumia broke the news in November 2022 when he said the government was engaging oil firms to use gold for oil.
Giving an update on the oil for the gold initiative on Thursday, Vice President Dr Mahamudu Bawumia wrote on his Facebook wall: “I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalisation of the Gold for Oil policy.
“Consequently, the first oil products under the policy will be delivered next month (January 2023). My thanks to the Minister for Energy, Minister for Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, PMMC, NPA and BOST for their leadership in the operationalisation of the Government’s Gold for Oil Policy”.
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