The Gold for Oil policy has been the lifeline preventing Ghana from experiencing fuel shortages, as seen in neighbouring Nigeria, according to Dr. Edwin Alfred Provencal, Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST).
Dr. Provencal emphasized that this initiative has been crucial in stabilizing the fuel supply and ensuring that fuel remains available, even at slightly higher prices.
He addressed sceptics who have doubted the programme’s success, asserting that without it, Ghana would have faced severe fuel shortages and skyrocketing prices.
Speaking to Citi Business News, Dr. Provencal highlighted the significant impact of the Gold for Oil policy on Ghana’s economy, countering calls for its discontinuation.
He noted that while fuel prices have indeed increased, the availability of fuel has been consistent, unlike in some neighbouring countries.
He remarked, “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.”
Launched on January 15, 2023, the Gold for Oil Programme aims to leverage additional foreign exchange from the Bank of Ghana’s Domestic Gold Purchase programme to secure the importation of petroleum products.
The policy has effectively utilized gold as a direct exchange for oil, ensuring a steady supply despite global market fluctuations.
Dr. Provencal’s strong endorsement of the programme underscores its critical role in shielding Ghana from a potential fuel crisis, a stark contrast to the situation in other parts of the region.
