Gold for Oil: COPEC skeptical about fuel price reduction

Gold for Oil: COPEC skeptical about fuel price reduction

The Chamber of Petroleum Consumers (COPEC) – Ghana has expressed doubt that government’s Gold for Oil deal will result in lower fuel prices at the pump.

The government has received the first consignment of 40,000 metric tonnes of oil under the agreement and is hopeful that this will help fuel consumers.

However, Duncan Amoah, Executive Secretary of the Chamber, has stated that the lack of a policy document for the deal makes accepting the government’s claim of lower fuel prices impossible.

He explained that a document outlining the government’s strategy for the deal could have alleviated some of their concerns.

Speaking on the Midday news on local media (Joy FM), Tuesday, 17th January 2023, he said, “Unfortunately, we at the Chamber of Petroleum Consumers are unable to ascertain the claim due to the non-availability of a policy document that spells out exactly what  the Bank of Ghana (BoG) is aiming to acquire, how many tonnes of gold, exactly what is PMMC pumping into the local mines and what we are pumping into them.

“There are a few critical things we would have wished that a policy document would have answered, but as we speak, there is really nothing.”

Meanwhile, BoG has abated Ghanaians’ concerns about government’s ability to supply enough gold for its Gold for Oil policy.

Stephen Opata, Director of Financial Markets at the Bank of Ghana, asserts that the country has enough gold reserves to sustain the policy.

During his appearance before the Public Accounts Committee (PAC) on Monday, January 16, he said, “As for the quantities, based on the production numbers we saw last year, gold has picked up. We believe that we can buy enough gold to sustain the programme.

“I must say that the numbers we are currently looking at is about 160,000 ounces per month and that will represent about 50 to 60 percent of the consumption of the country. According to what PMMC indicates, I think we have volumes to support the programme,” he added.

Source: Energy Ghana






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