We will gradually phase out Gold-for-Oil policy – BoG announces

The Bank of Ghana (BoG) says it will gradually phase out the Gold-for-Oil policy, implemented in February 2023 to stabilize fuel prices.

According to the Central Bank, the programme has achieved its purpose and is no longer necessary.

Governor of the Bank, Dr. Ernest Addison said “The Gold-for-Oil policy was a crisis management policy. We came in at the time in 2022 when the currency was depreciating very sharply and then prices at the pump became unbearable.”

“So as things normalise the rationale for these interventions may not be as strong as they were when we were in the middle of the crisis. So this is why we may have to get out of that operation,” he said.

The Gold-for-Oil policy was introduced by the government to stabilise fuel prices and the local currency.

The government credited the stabilising fuel prices in recent times to the policy which was announced by Vice President, Mahamudu Bawumia in December 2022.

Under the programme, the government pays for imported fuel products with gold purchased by the Central Bank.

The first consignment of the policy arrived at the Tema Port and discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST) in January this year.

The 41,000 metric tonnes of the petroleum products, valued at $40 million were delivered by SCF YENISEI and sold by BOST to bulk distributing companies (BDCs) around the country.