Barter gold for oil: Ghana to receive 155,000 tons of fuel by February ending — BOST boss

He has revealed that by the end of February, Ghana will take delivery of four separate gasoline cargoes.

According to him, "The next shipment will arrive on Sunday [February 19th]. It’s 35,000 tons of gasoline. The following week, another 40,000 tons will arrive, followed by another 40,000 tons that same week, and then another 40,000 tons in the last week of February. So, God willing, there will be four by the end of February."

"By the end of February, I can bet you that you will see that the prices will be extremely competitive. By the end of March, we will see more. We know what we are getting now and what we got in the past from the suppliers. It will definitely reflect at the pumps. So we need to appreciate this deal," Edwin Provencal said on Accra-based Citi FM.

However, the National Petroleum Authority (NPA) assured Ghanaians that the prices of petroleum products imported under the gold for oil (G4O) programme reflect at the pumps to benefit consumers.

The NPA in a statement said the gold for oil barter trade initiated by the government will lead to a drop in fuel prices.

It said it would work with the BOST to negotiate prices with international traders adding that it will regulate the prices of petroleum products.

Earlier, Vice-President Dr. Mahamudu Bawumia disclosed that the government expected to receive the first crude oil products last month January 2023.

The policy to buy oil products with gold rather than U.S. dollar reserves is meant to tackle dwindling foreign currency reserves coupled with the demand for dollars by oil importers, which weakens the Ghana cedi and increases living costs.

Dr. Bawumia said the government is projecting to save about US$3 billion in foreign exchange yearly from the proposed policy which seeks to acquire oil products in exchange for gold.

He explained that the policy which would be implemented in the first quarter of next year could also relieve some inflationary pressure on the cedi.

Speaking at the 11th Association of Ghana Industries (AGI) Ghana Industry and Quality Awards in Accra, Bawumia said "So we will be saving US$3 billion from the lack of demand from the Bank of Ghana (BoG) for foreign exchange. This reduces the pressure on the cedi immediately and, therefore, you will see much, much lower depreciation of the currency."

He indicated that the import-reliant nature of the economy, particularly for finished petroleum products, accelerated the depreciation of the cedi and increased the cost of doing business and cost of living.