Dr. Edwin Alfred Provencal, BOST’s Managing Director, credits the Gold for Oil policy for preventing Ghana from facing fuel shortages similar to those seen in Nigeria, highlighting its effectiveness in ensuring energy security.
He emphasized that the programme has proven its effectiveness since its inception, countering scepticism from some industry analysts who have called for its discontinuation.
In an exclusive interview with Citi Business News, Dr. Provencal emphasized the significant contribution of the Gold for Oil program to Ghana’s economic growth.
“The forex response to different stimuli but in a nutshell gold for oil has been extremely successful because without the gold for oil, there would have been serious shortages in this country and prices of fuel products would have gotten to about 35 or 40 cedis.”
“Gold for oil has ensured that even though the prices are a little bit on the high side, the fuel is available as compared to some of our neighbouring countries and prices are below what was recorded in November 2022.”
The Gold for Oil Programme officially commenced on January 15, 2023, with the arrival of the initial shipment of approximately 40,000 metric tonnes of diesel, valued at $40 million.
The primary goal of this initiative is to leverage the Bank of Ghana’s Domestic Gold Purchase (DGP) programme to access additional foreign exchange resources, which will be utilized to fund the importation of petroleum products, currently estimated at around $350 million per month.
The Barter Channel enables suppliers to receive gold directly in exchange for petroleum products, with the Bank of Ghana providing the equivalent gold volume.
The program facilitates the opening of Gold Metal Accounts between the Bank of Ghana and international oil traders at a designated gold refinery, allowing for gold transfers.
Payments for oil supplies can be made through two channels: either by bartering gold for oil or by converting gold to cash through a broker channel, which is then paid to the supplier.
