Despite the government’s implementation of the Gold for Oil Policy, the Institute of Economic Security (IES) forecasts an increase in fuel prices.
Adam Yakubu, a policy analyst with the IES, said consumers should anticipate that the price of fuel will increase as predicted by Tuesday or Wednesday on Starr Today with Joshua Kodjo Mensah on January 30, 2023.
“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.”
Former President John Mahama has also asserted that because the Gold for Oil arrangement is a global financial transaction, the administration must present it to the parliament for review and approval.
“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.”
President Mahama referenced the Sinohydro arrangement, which trades the nation’s bauxite for Chinese infrastructure development, as a prime example of unfair trade in his response to a question during the forum, which was attended by NDC members from the UK and Ireland.
He went on to say why not the present agreement in which Ghana’s gold is being exchanged for oil if the Sinohydro agreement was a better bargain and went to Parliament for approval because it is an international financial transaction.
The former President criticized the development, noting that the agreement is still cloaked in total secrecy, with only those government officials participating in the transaction knowing the specifics.
