The Managing Director of the Bulk Oil Storage and Transportation Firm Restricted (BOST), Dr. Edwin Alfred Provencal, has strongly asserted that the Gold for Oil coverage has been instrumental in stopping potential gasoline shortages, much like these presently affecting Nigeria.
He emphasised that the programme has confirmed its effectiveness since its inception, countering scepticism from some trade analysts who’ve known as for its discontinuation.
Chatting with Citi Enterprise Information, Dr Provencal highlighted the optimistic impression of the programme on financial development, underscoring its important function in stabilizing the gasoline provide within the nation.
“The foreign exchange response to totally different stimuli however in a nutshell gold for oil has been extraordinarily profitable as a result of with out the gold for oil, there would have been severe shortages on this nation and costs of gasoline merchandise would have gotten to about 35 or 40 cedis.”
“Gold for oil has ensured that despite the fact that the costs are somewhat bit on the excessive aspect, the gasoline is obtainable as in comparison with a few of our neighbouring international locations and costs are under what was recorded in November 2022.”
The Gold for Oil Programme formally kicked off on January 15, 2023, with the arrival of the primary consignment of about 40,000 metric tonnes of diesel valued at $40 million.
The prime goal of the programme is to make use of further overseas trade sources from the Financial institution of Ghana’s Home Gold Buy (DGP) programme to supply overseas foreign money for the importation of petroleum merchandise for the nation which presently stands at about US$350 million per 30 days.
Beneath the Barter Channel, suppliers keen to take gold in direct trade for petroleum merchandise will likely be supplied with the equal quantity of gold by the Financial institution of Ghana.
The programme allowed the Financial institution of Ghana and Worldwide Oil Buying and selling Firms to open Gold Metallic Accounts in a mutually agreed gold refinery for gold switch.
Cost for oil provide is to be finished in two channels: by the use of barter commerce the place gold is exchanged for oil or through dealer channel the place the gold is transformed into money and paid to the provider.