Dr. Clement Apaak, Member of Parliament for Builsa South, believes Vice President Dr. Mahamudu Bawumia has been badly exposed over the gold-for-oil policy.
He asserted that several experts had called out the Vice President for attributing the reduction of fuel price prices and he should do the humble thing and accept reality.
Fuel prices in Ghana, according to industry experts, are determined by two key variables: the exchange rate and international crude oil prices.
Aside from that, the government’s taxes and levies on these products, as well as the profit margins of Oil Marketing Companies (OMCs), influence fuel prices.
Fuel is currently selling for an average of $74.47 per barrel.
International intermediaries, such as West Texas Immediate (WTI), are selling their products at $63 per barrel, and prices are expected to fall further due to increased supply from major oil-producing countries.
Vice President Mahamudu Bawumia first announced the government’s intention to launch the Gold-for-Oil initiative in November 2022. The agreement was contingent on purchasing oil products in Ghanaian gold rather than US dollars.
Dr. Bawumia explained on Facebook that buying oil with gold would help Ghana’s dwindling foreign reserves while also reducing demand for US dollars from oil importers.
He recently attributed a drop in fuel prices to the policy, but experts, including the African Centre for Economic Policy, disagreed.
According to Mr Paul Ofori, Head of Research and Training at the Chamber of Petroleum Consumers (COPEC), Ghana’s oil demand is approximately 11,500 metric tonnes per day, and the 80,000 metric tonnes are insignificant enough to affect prices.
COPEC has also challenged the government to demonstrate to Ghanaians that the policy is effective, going beyond rhetoric and providing figures to demonstrate that the policy is effective.
Dr. Apaak believes the second gentleman of the land is now obstinately swimming against the truth, despite having been exposed by experts.
He wants him to be truthful and tell Ghanaians the truth in order to save himself from the current embarrassment.
”Veep Bawumia has been badly exposed for trying to attribute recent decreases in fuel prices to his opaque pet creation named Gold-for-Oil. Experts have called him out, but he is still doggedly swimming against the truth. Honesty saves embarrassment!”