Business General News

Petrol to sell at GHC17 despite Gold for Oil Policy – IES



The Institute of Energy Security (IES) is predicting an increase in fuel prices despite the Gold for Oil Policy being rolled out by the government.

Speaking on Starr Today with Joshua Kodjo Mensah Monday January 30, 2023 Policy Analyst with the IES, Adam Yakubu said consumers should expect that by Tuesday or Wednesday prices of petroleum will jump up per their estimated projections.

“Even though the government’s policy on Gold for Oil is on course we are not seeing anything after the 45 metric tons of oil that we brought in somewhere last week. In the last two weeks the international prices of petroleum have gone up and the cedi has also lost some considerable value against the major trading currencies and the dollar.

“Until the full disclosure of the Gold for Oil Policy by the government we are unable to see any clear reduction. Unless the government has something to do with its taxes on petroleum products that will bring some respite which we are not seeing because of the economic situation we find ourselves in,” Mr. Yakubu stated.

He continued: “So clearly, from now on consumers should brace themselves for Ghc15 to 17 cedis diesel and LPG Ghc14.”

Meanwhile, Former President John Mahama has stated that the government must put before parliament, the Gold for Oil agreement for parliamentary scrutiny and approval since the deal is an international financial transaction.

“According to the 1992 Constitution of Ghana international financial transactions require the approval of Parliament,” he stated at a public forum in London, adding “it does not matter that the Gold for Oil deal is a batter trade.”

Speaking in response to a question at the forum, attended by members of the UK & Ireland Chapter of the National Democratic Congress (NDC), President Mahama cited the Sinohydro agreement that exchanges the country’s bauxite for infrastructure development by China as a classic example of batter trade.

He further explained that if the Sinohydro agreement was a batter deal and went to Parliament for approval because it is an international financial transaction, why not the current deal in which Ghana’s gold is being exchanged for oil.

The former President noted that the deal is currently shrouded in complete secrecy with only government officials who are involved in the transaction knowing the details, describing the development as unacceptable

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