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BOST MD calls on CSOs to support gold for oil policy

The policy is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank

Civil society organisations (CSOs) and Ghanaians in general must support the government’s gold for oil policy, the MD for the Bulk Oil Storage and Transportation Company Limited (BOST), Edwin Provencal has said.

The policy is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank.

The move is an intervention to help stabilise prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, as the direct gold barter will be the mode of paying for imported oil instead of depleting the foreign exchange reserve.

Appearing on the Asaase Breakfast Show on Monday (13 February), Provencal said Ghana is expecting more consignments in February under the gold for oil policy and this will drive prices of petroleum products down.

“This programme is meant to solve a macro economic problem which is causing lots of financial issues… it is evident that with the initial implementation of the programme, it has worked in reducing pricing,” the BOST boss said.

“I will plead with Ghanaians and CSOs to help make this programme work and we will concurrently see ourselves better placed in a three-month period,” Provencal told sit-in host Benjamin Offei-Addo.

“Clearly, we have to make sure the communication around this gold for oil deal is well disseminated. Understanding will help alleviate concerns for sure,” Provencal added.

Watch the full interview in the attached audio clip below: 

The deal

In November 2022 the Government of Ghana, through the vice-president, announced plans to buy oil products with gold rather than US dollars.

Vice-President Mahamudu Bawumia said the gold for oil policy was meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which was weakening the cedi and increasing the cost of living.

“It will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Bawumia said.

He added that using gold would prevent the exchange rate from having a direct impact on fuel or utility prices, as domestic sellers would no longer need foreign exchange to import oil products.


Reporting by Fred Dzakpata in Accra


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