We are not opposed to hedging – Energy Ministry

The Energy Ministry has debunked reports that it is resisting calls to hedge petroleum prices in the country. The Chamber of Bulk Oil Distributors (CBOD) suggested to government to pursue arrangements that hedge prices of petroleum products. This is because the pricing structure in a price deregulated market limits government’s options in insulating the market from major price swings. The suggestion is coming at a time crude oil prices are rising, resulting in the increase of prices of petroleum products at the pumps. Last week, a 10% increase in transport fares was announced, mainly attributable to rising prices of petroleum products. CBOD has urged government to identify its political and economic crude price threshold (CPT). Speaking on Business Focus on TV3, Director of Corporate Affairs at the Energy Ministry Nana Kofi Oppong Damoah says the Ministry is not opposed to the suggestion. “Let me be clear on this. We at the Ministry of Energy are not opposed to hedging or any other suggestion that will ensure price stability in the petroleum sector, as a result of the deregulation policy”, he emphasized. He added that the ministry is currently engaging stakeholders on the suitable move to solve the shock of price hikes. “We are still engaging stakeholders on the right formula, bearing in mind that we owe the good people of Ghana the responsibility to ensure that they are able to buy fuel at affordable prices”. He promised that the ministry will soon communicate its decision to the public. Grace Asare| 3FM| 3news.com]]>