{"id":43786,"date":"2014-09-01T13:43:15","date_gmt":"2014-09-01T13:43:15","guid":{"rendered":"http:\/\/4cd.e16.myftpupload.com\/?p=43786"},"modified":"2014-09-01T14:26:48","modified_gmt":"2014-09-01T14:26:48","slug":"hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/","title":{"rendered":"Hedging won’t protect Ghanaians from fuel price hikes – Hosi"},"content":{"rendered":"

The government\u2019s decision to introduce hedging against rising oil prices will not protect Ghanaians from fuel price hikes, the Chief Executive of the Chamber of Bulk Oil Distributors Senyo Hosi has said.<\/p>\n

During the period of the hedging arrangement, the price of crude oil will be pegged at a particular figure over a period of time so that any price change during the time frame of the hedging would not be transferred to the consumer.<\/p>\n

According to Mr. Hosi, the current price of petroleum products in Ghana is not determined by the world market price of oil but by the depreciation of the cedi against major trading currencies.<\/p>\n

\u201cThe increment we have experienced mostly has not had much to do with the international price, but has more to do with forex. If you can develop a solution for that, then that is fantastic, but if they are not getting a solution for this core problem, which is the fx, then you can’t,\u201d he stated.<\/p>\n

The government will from September 1<\/span><\/a><\/span>, 2014 begin quarterly hedging as a measure to avoid huge debts accumulating from subsidizing\u00a0price differentials on petroleum products.<\/p>\n

Government has explained that the hedging is aimed at protecting Ghanaians from price hikes when it reviews prices of petroleum.<\/p>\n

But speaking to Citi News, Mr. Hosi said that since the world market price of oil has been stable in 2014, the government must tackle the depreciation of the Cedi \u00a0to achieve its hedging objectives.<\/p>\n

\u201cFact is hedging the international market price is much simpler, less expensive and that will be possible. That is not the core of the problem we\u2019ve had this year, to some extent, prices have been stable or a bit more a downward trend.\u00a0 The key factor driving prices up, or the variables driving prices up, has been the fx\u00a0 and if that can be hedged, then government objectives can be met.\u201d<\/p>\n

Meanwhile \u00a0the Director of Research at the African Centre for Energy Policy (ACEP) John Peter Amewu is asking the government to ensure its decision will not negatively affect the economy.<\/p>\n

\u201cYou undertake hedging without a very accurate planning, it can affect the economic outlook. Again, \u00a0it is critical to realize that hedging does not reduce the volatility of oil prices at all. When you even hedge and you still introduce an element of subsidy, that even worsens the problem,\u201d Mr. Amewu said.<\/p>\n

Analysis<\/strong><\/p>\n

Businesses that need to buy significant quantities of crude oil hedge against rising crude oil price by taking up a position in the crude oil future.<\/p>\n

For the government of Ghana to implement the\u00a0 quarterly hedge, it must purchase enough crude oil to cover the quantity of crude oil required by the business operator.<\/p>\n

The government currently owes the\u00a0Bulk Oil Distribution Companies (BDCs) GH\u00a21.3 billion.<\/p>\n

Its failure to pay the debts owed the BDCs led to a recent shortage of petrol in major cities and towns across the country.<\/p>\n

 <\/p>\n

 <\/p>\n

By: Nana Ama Agyemang Asante\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"

The government\u2019s decision to introduce hedging against rising oil prices will not protect Ghanaians from fuel price hikes, the Chief Executive of the Chamber of Bulk Oil Distributors Senyo Hosi has said. During the period of the hedging arrangement, the price of crude oil will be pegged at a particular figure over a period of […]<\/p>\n","protected":false},"author":14,"featured_media":14932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[43,38],"yoast_head":"\nHedging won't protect Ghanaians from fuel price hikes - Hosi - Citi 97.3 FM - Relevant Radio. Always<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hedging won't protect Ghanaians from fuel price hikes - Hosi - Citi 97.3 FM - Relevant Radio. Always\" \/>\n<meta property=\"og:description\" content=\"The government\u2019s decision to introduce hedging against rising oil prices will not protect Ghanaians from fuel price hikes, the Chief Executive of the Chamber of Bulk Oil Distributors Senyo Hosi has said. During the period of the hedging arrangement, the price of crude oil will be pegged at a particular figure over a period of […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/\" \/>\n<meta property=\"og:site_name\" content=\"Citi 97.3 FM - Relevant Radio. Always\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/citi97.3\" \/>\n<meta property=\"article:published_time\" content=\"2014-09-01T13:43:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2014-09-01T14:26:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/citifmonline.com\/wp-content\/uploads\/2014\/04\/oil1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"248\" \/>\n\t<meta property=\"og:image:height\" content=\"210\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kojo Akoto Boateng\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@citi973\" \/>\n<meta name=\"twitter:site\" content=\"@citi973\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kojo Akoto Boateng\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/\",\"url\":\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/\",\"name\":\"Hedging won't protect Ghanaians from fuel price hikes - Hosi - Citi 97.3 FM - Relevant Radio. Always\",\"isPartOf\":{\"@id\":\"https:\/\/citifmonline.com\/#website\"},\"datePublished\":\"2014-09-01T13:43:15+00:00\",\"dateModified\":\"2014-09-01T14:26:48+00:00\",\"author\":{\"@id\":\"https:\/\/citifmonline.com\/#\/schema\/person\/1642ef473fe39bf0c4e2f2f252678eb1\"},\"breadcrumb\":{\"@id\":\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/citifmonline.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Hedging won’t protect Ghanaians from fuel price hikes – Hosi\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/citifmonline.com\/#website\",\"url\":\"https:\/\/citifmonline.com\/\",\"name\":\"Citi 97.3 FM - Relevant Radio. Always\",\"description\":\"Ghana News | Ghana Politics | Ghana Soccer | Ghana Showbiz\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/citifmonline.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/citifmonline.com\/#\/schema\/person\/1642ef473fe39bf0c4e2f2f252678eb1\",\"name\":\"Kojo Akoto Boateng\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/citifmonline.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ba51f5385119e83762c67ecd6aa410ab?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ba51f5385119e83762c67ecd6aa410ab?s=96&d=mm&r=g\",\"caption\":\"Kojo Akoto Boateng\"},\"url\":\"https:\/\/citifmonline.com\/author\/kojo\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Hedging won't protect Ghanaians from fuel price hikes - Hosi - Citi 97.3 FM - Relevant Radio. Always","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/","og_locale":"en_US","og_type":"article","og_title":"Hedging won't protect Ghanaians from fuel price hikes - Hosi - Citi 97.3 FM - Relevant Radio. Always","og_description":"The government\u2019s decision to introduce hedging against rising oil prices will not protect Ghanaians from fuel price hikes, the Chief Executive of the Chamber of Bulk Oil Distributors Senyo Hosi has said. During the period of the hedging arrangement, the price of crude oil will be pegged at a particular figure over a period of […]","og_url":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/","og_site_name":"Citi 97.3 FM - Relevant Radio. Always","article_publisher":"https:\/\/www.facebook.com\/citi97.3","article_published_time":"2014-09-01T13:43:15+00:00","article_modified_time":"2014-09-01T14:26:48+00:00","og_image":[{"width":248,"height":210,"url":"https:\/\/citifmonline.com\/wp-content\/uploads\/2014\/04\/oil1.jpg","type":"image\/jpeg"}],"author":"Kojo Akoto Boateng","twitter_card":"summary_large_image","twitter_creator":"@citi973","twitter_site":"@citi973","twitter_misc":{"Written by":"Kojo Akoto Boateng","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/","url":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/","name":"Hedging won't protect Ghanaians from fuel price hikes - Hosi - Citi 97.3 FM - Relevant Radio. Always","isPartOf":{"@id":"https:\/\/citifmonline.com\/#website"},"datePublished":"2014-09-01T13:43:15+00:00","dateModified":"2014-09-01T14:26:48+00:00","author":{"@id":"https:\/\/citifmonline.com\/#\/schema\/person\/1642ef473fe39bf0c4e2f2f252678eb1"},"breadcrumb":{"@id":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/citifmonline.com\/2014\/09\/hedging-wont-protect-ghanaians-from-fuel-price-hikes-hosi\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/citifmonline.com\/"},{"@type":"ListItem","position":2,"name":"Hedging won’t protect Ghanaians from fuel price hikes – Hosi"}]},{"@type":"WebSite","@id":"https:\/\/citifmonline.com\/#website","url":"https:\/\/citifmonline.com\/","name":"Citi 97.3 FM - Relevant Radio. Always","description":"Ghana News | Ghana Politics | Ghana Soccer | Ghana Showbiz","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/citifmonline.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/citifmonline.com\/#\/schema\/person\/1642ef473fe39bf0c4e2f2f252678eb1","name":"Kojo Akoto Boateng","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/citifmonline.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ba51f5385119e83762c67ecd6aa410ab?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ba51f5385119e83762c67ecd6aa410ab?s=96&d=mm&r=g","caption":"Kojo Akoto Boateng"},"url":"https:\/\/citifmonline.com\/author\/kojo\/"}]}},"_links":{"self":[{"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/posts\/43786"}],"collection":[{"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/comments?post=43786"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/posts\/43786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/media\/14932"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/media?parent=43786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/categories?post=43786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/wp-json\/wp\/v2\/tags?post=43786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}