Gold-for-Oil has reduced forex pressures on bulk energy storage – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has touted government’s achievement in the implementation of the gold-for-oil programme.

According to him, the implementation of the gold-for-oil programme has reduced the forex pressures on bulk energy storage, transportation and bulk imports.

He said the programme has helped the government negotiate more competitive premiums with suppliers.

President Akufo-Addo said premium oil price dropped from $180 to 200 metric tonnes to $70 metric tonnes.

The gold-for-oil programme, he said, led to the stabilization of fuel prices at various pumps in 2023.

While delivering the State of The Nation Address in parliament on Tuesday, February 27, 2024, President Akufo-Addo said, “Mr Speaker, we have all heard about the Gold for Oil Programme. It has been explained, debated and talked about. At this moment, all I want to say about it is that the Gold for Oil Programme has worked well, and reduced significantly forex pressures on bulk energy storage, transportation and bulk imports, distribution and export companies, and enabled them to negotiate more competitive premiums with suppliers.”

“Premiums dropped from one hundred and eighty to two hundred dollars per metric tonnes ($180-200/MT) to seventy dollars per metric tonnes ($70/MT) or less. This also resulted in reduced and stabilized prices at the pumps of between twelve to thirteen cedis (GH¢12-13) per litre for the whole of 2023,” he stated.

The gold-for-oil policy was introduced by government to stabilize the prices of petroleum products and the local currency.

Under the programme, government paid for imported fuel products with gold purchased by the Central Bank.

The first consignment arrived at the Tema Port and was discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST) in January 2023.

The 41,000 metric tonnes of the petroleum products, valued at $40 million were delivered by SCF YENISEI and sold by BOST to bulk distributing companies (BDCs) around the country.

SA/NOQ