BOST MD Lauds Gold for Oil Policy, As A Solution for "No Fuel Shortages" in Ghana

Dr. Edwin Alfred Provencal, Managing Director of Bulk Oil Storage and Transportation Company Limited (BOST), has staunchly defended the Gold for Oil policy, crediting it with averting potential fuel shortages akin to those currently troubling Nigeria.

Despite skepticism from some industry analysts, Dr. Provencal affirmed that the program has been crucial in stabilizing the fuel supply and mitigating price hikes in Ghana.

Dr. Provencal emphasized the policy's role in maintaining a steady fuel supply and curbing price surges that could have reached as high as 40 cedis per litre. He noted that the program, launched on January 15, 2023, has been instrumental in keeping fuel available and prices lower than those recorded in November 2022, unlike in some neighboring countries facing shortages.

The Gold for Oil Programme was designed to utilize foreign exchange resources from the Bank of Ghana's Domestic Gold Purchase (DGP) programme to fund petroleum imports, which amount to approximately $350 million monthly. Through a barter system, gold is exchanged directly for oil, or alternatively, it is converted to cash for payment to suppliers.

Dr. Provencal's remarks underscore the policy's significance in sustaining Ghana's fuel supply amidst global economic challenges, positioning the Gold for Oil Programme as a vital tool for economic stability.