Falling fuel prices due to G4O is not a global factor – Amin Adam told ACEP
The former Deputy Minister of Energy, Mohammed Amin Adam, stated that the current reduction in the price of fuel at the pump is directly due to the influence of the gold policy for oil.
Providing further details on the policy, the Karaga Member of Parliament said the policy intervention has contributed to strengthening the cedi against the dollar, resulting in a reduction in the price of fuel at the pump.
The comments came after the African Center for Energy Policy (ACEP) rejected claims that the recent reduction in fuel prices was due to the gold policy for oil.
According to ACEP, the reduction is due to the decline in global crude oil prices and not the influence of government gold on oil policy.
The Executive Director of ACEP, Benjamin Boakye, said the government should not take credit for reducing fuel prices.
“If you really analyze how price mechanics work, you will understand that it has nothing to do with gold for oil policy. We are seeing prices in the international market going down. The indication is that it will go down again.
But speaking with Umaru Sanda Amadu in an interview Witness NewsOn Thursday, March 16, Amin Adam, who is also the Minister of State designated for the Ministry of Finance, said that ACEP’s claims are baseless.
“It can’t be true because the price of crude oil has failed, so the domestic price has fallen. The domestic price has fallen because of the intervention that we have done which has helped on the side of the exchange rate and the impact of the exchange rate is what we see in the fall of domestic prices of petroleum prices at the pumps.
Meanwhile, the Association of Oil Marketing Companies (AOMC) said that the real impact of gold on oil policy cannot be realistically assessed as the product through the policy accounts for only 22% of the volume of oil at the pump.
In an interview with Citi News‘ Hanson Aagyemang, CEO of the association, Kwaku Agyeman-Duah tasked the stakeholders to increase the amount of volume provided through the policy.
“We don’t have a lot of fuel for everyone because the percentage to the total output is not much, so not everyone can get it. As they say now, the supply so far is only about 22 percent of the market, so 22 percent will not have much impact than 78 percent on the other hand, it is gradual.
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