Dr. Edwin Alfred Provencal, Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST), has asserted that the Gold for Oil policy has been crucial in averting significant fuel shortages in Ghana, akin to the issues currently faced by Nigeria.
Dr. Provencal spoke to Citi Business News, emphasizing the policy’s success in maintaining a stable fuel supply and fostering economic growth since its launch.
He countered calls for the policy’s discontinuation from some industry analysts by highlighting its effectiveness.
“The Gold for Oil initiative has been highly successful. Without it, Ghana would have experienced severe fuel shortages and prices could have surged to about 35 or 40 cedis per liter,” Dr. Provencal said. “Thanks to this policy, despite some high prices, fuel remains available and more affordable compared to neighboring countries and prices from November 2022.”
Launched on January 15, 2023, the Gold for Oil Programme began with the delivery of approximately 40,000 metric tonnes of diesel, valued at $40 million. The programme’s goal is to leverage gold reserves from the Bank of Ghana’s Domestic Gold Purchase (DGP) initiative to facilitate the importation of petroleum products, which cost around $350 million monthly.
Through the Barter Channel, suppliers willing to accept gold in exchange for petroleum products receive gold equivalent from the Bank of Ghana. Alternatively, the gold can be converted into cash through a broker channel for payment to suppliers.
