The Gold-for-Oil policy was initiated by government in 2023
A member of the Movement for Change, Joseph Amoah, has accused the government of telling a different story from what it is doing with its gold-for-oil policy.
According to him, the government’s claim that the policy is helping the country raises questions about why they would stop it.
In an interview with Kojo Marfo on Abusua Nkommo on ABUSUA965FM, Amoah stated that at the time the government introduced the gold-for-oil policy, one ounce of gold could purchase 20 barrels of crude oil. However, the same ounce of gold can now buy 26 barrels of crude oil, making it more profitable.
“They came with propaganda about a policy called Gold for Oil. I heard Dr. Gideon Boako say that the Vice President is thinking outside the box; is this what they call proactive action? At the time they implemented the Gold for Oil policy, one ounce of gold could purchase 20 barrels of crude oil. Now, it buys 26 barrels. So, why stop it?” he quizzed.
Amoah called on the government to account for the gold-for-oil policy, which he claims has not been explained to anyone.
He questioned why the government would introduce a ‘thinking outside the box’ policy and then fail to account for it.
“The propaganda optics surrounding the policy should stop, and the government should account for the gold used in the program,” the CEO of Love Enterprise stressed.
Meanwhile, on the government’s performance tracker, the government highlighted that the Gold for Oil program has led to a reduction in the ex-pump price of petroleum products by 45% as of December 2023.
Background
Last year, the Vice President, Dr. Mahamudu Bawumia announced a new government policy dubbed Gold for Oil (G4O).
The policy, as explained by the government, 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, announced by the Vice President amid the depreciation of the cedi against the US dollar and the rising cost of fuel prices, was explained as an intervention to help stabilize prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, as the direct gold barter would be the mode of paying for imported oil instead of depleting the foreign exchange reserve.
According to the government’s G40 Programme Framework dated February 3, 2023, which explains the policy, payment for the oil supply is done in two channels; barter trade or via forex obtained from selling gold to a broker.
Under the Barter Channel, suppliers willing to take gold in direct exchange for petroleum products will be provided with the equivalent volume of gold by the Bank of Ghana (BoG).
