The claims by the Vice President that the drop in the prices of fuel is due to the gold for oil policy has been refuted by Benjamin Boakye, the Executive Director of the African Centre for Energy Policy (ACEP).
Vice President Mahamudu Bawumia during the commissioning of a new office complex for the Bulk Oil Storage and Transport (BOST) on March 15, 2023 indicated that the gold for oil policy initiated by the government has led to the stabilization of the exchange rate and also the drop in the prices of fuel.
However, speaking in an interview on News 360 on TV3 monitored by 1Family Radio, Mr. Boakye noted that the drop in fuel prices has nothing to do with the gold for oil policy by the government.
“What the Vice President said has really shocked me. Maybe you are looking at something different but if we are really examining the industry and how the pricing mechanics work, you will note that it has nothing to do with gold for oil,’’ he explained.
According to him, the prices on the international market has dropped so it is only expected to drop down here too. “We are seeing prices on the international market drop, indications are that it will drop further,’’ he added.
Mr. Boakye explained two factors for the drop in the prices of fuel. He indicated that since the international price has dropped, it will have some implications on the prices in the country.
He continued that the cedi has also been stable for some time now and these are the factors which has led to the drop of fuel prices and not the gold for oil policy by the government.