The Gold for Oil Policy is likely to have a 20 – 25 percent reduction impact at the pumps in the next consignment which will cater for 50 percent of national petroleum products demand arrives by March this year, the Deputy Minister of Energy, Andrew Egyapa Mercer has said.
Speaking to the media mentioned that some OMCs who received the Gold for Oil consignment have started reducing their fuel prices.
“Those who have some of the commodities have some marginal reduction in their prices. But, of course, you will have a situation where they have to co-mingle the gold for oil products with already existing stock.
And so the reduction was marginal. In any event, the gold for oil commodity that came in was in a region of some 10 percent, and so if a wrap-up to 50 percent by March happens, all things being equal, if the price of the commodity changes tomorrow, the price will go up but the impact then that will come based on this policy is in the region of some 20-25 percent which we expect to be the benefit that a consumer gets” The Deputy Minister stated.
Stakeholders in the Energy sector are calling for transparency in the bidding process of the gold for oil policy.
Meanwhile, an Energy Expert Kwame Gyantuah says, the program may collapse the Bulk Oil Distribution Companies and will stifle the private sector participation in the industry if not properly handled.
“If we are not careful this can also collapse the BDCs. BDCs have cost, and these costs are sometimes high, so if you bring a price which is being controlled and they can’t make the returns that they have to make to keep their businesses alive, what happens? The government has always said the private sector is the engine of growth, why is the government getting into this kind of transaction? Would it not have been better if the government decided to use gold but then the money that we got we used it to support the BDCs under strict monitoring.” He said.
