The deputy Energy Minister, Andrew Egyapa Mercer, has revealed that the initial consignment of 40,000 tons of oil brought into the country under the Gold-for-oil policy was purchased with cash.
According to Andrew Egyapa Mercer, Ghana paid for the oil and not gold, widely claimed by the Vice President, Dr Mahamudu Bawumia.
His revelation comes after industry experts, the Institute of Energy Securities and COPEC pressured the government. The institutions ask for the quantity of gold it exchanged for the 40,000 metric tons of fuel.
Ghanaians raised concerns about the after-fuel prices surged. Vice President Mohammadu Boawumiah promised Ghanaians cheap fuel in February.
Read Also: GPRTU Hints Of New Transport Fares
The Minority in Parliament questioned the feasibility of the policy. They argue that it will not affect the current prices at the pumps. Ghanaians are waiting for the positive effect of the policy.
Deputy Energy Minister Andrew Egyapa Mercer said the companies they dealt with initially could not exchange gold for oil.
The policy actually started with an intent to do strict barter for gold and petroleum products, but it became apparent that any of the international oil trading companies that do not have a commodity wing to deal with gold on their behalf will be excluded from the policy. We developed the policy such that we were operating two streams, one was direct barter and the second was monetising the gold, so we can pay for IOTs that were not other commodity focused but solely petroleum products.
Fuel prices have increased twice since Ghana took in 40,000 tons of oil. The vice president’s promise of cheaper oil has been burnt by reality.
Ghana took delivery of its first cargo under the gold-for-oil policy. This is our test cargo, it is the cargo to test the framework if everything that has been put in place will work, by the grace of God the Framework will work and if that should happen we are going to save a lot of foreign exchange and reduce the pressure on our currency. Bawumiah said.
Before you go, kindly Follow US for more exclusive news updates. Also, join our growing online family.
