Gold-for-oil: Firms in value chain won’t be short-changed – Bawumia’s economic advisor

Dr. Tiah Abdul-Kabiru Mohammed, Economic Advisor to the Vice President, Dr. Mahamudu Bawumia, has assured that firms that operate within the petroleum value chain will not be short-changed in the government’s gold-for-oil policy.

He indicated that a channel has been created to address the concerns of firms in the value chain.

Speaking on The Point of View with Selorm Adonoo, Dr. Kabiru hinted, “The arrangement is such that no private person within the value chain is going to be short-changed. Government has opened a channel to be able to address the concerns of those people”.

He envisaged that the prices of fuel at the various pumps will be reduced when the volume of the consignment increases.

“We will begin to see the full impact when volumes begin to increase. The Oil Marketing Companies (OMCs) are likely to be selling at a lower rate because they are getting it at a competitive price, even though they are mixing it with other sources,” Dr. Kabiru.

Ghana on January 15, 2023, took delivery of 40,000 metric tons of the first consignment under the policy from the United Arab Emirates.

The move by the government is meant to tackle dwindling foreign currency reserves brought on by the demand for dollars by oil importers, which is weakening the local cedi and increasing cost of living in Ghana.

While addressing the New Year school within the week, Dr. Bawumia said, “on Monday Ghana took delivery of its first cargo under the gold for oil policy. This is our test cargo, it is the cargo to test the framework to see if everything that has been put in place will work. By the grace of God, the framework will work and if that should happen, we are going to save a lot of foreign exchange and reduce the pressure on our currency.”