Government’s claims that the gold for oil arrangement will result in a drop in fuel costs in the coming days have been refuted by the minority in parliament.
The company had indicated that, the oil was not bought at a bargain but rather at a premium and that it will not result in a decrease in fuel prices.
On January 15, government received delivery of the first consignment of the gold for oil agreement, totaling 40,000 metric tonnes, with the goal of relieving FX strain and providing the nation with cheaper fuel.
However, John Jinapor, the ranking member of the Parliament’s Mines and Energy Committee, responding at a press conference has said the transaction is actually making things worse.
“As they claimed that this gold for oil deal will lead to fuel price reduction, fuel prices are going up and the information I have is that, the oil they bought was bought at a premium and not on discount, so this narrative that they are going to get cheap oil somewhere is not true”.
“There is nothing like cheap oil when it comes to international oil trading. On the contrary, this deal is leading to a premium in terms of the pricing so the notion that oil prices will go down is untrue. The diesel covers only 25 percent of our diesel requirement. So that is not even enough to change the price” John Abu Jinapor stated.
Source:Mybrytfmonline.com/Joseph Asare
