Dr. Mahamudu Bawumia, the vice president, has declared that Ghana has finished negotiations to implement the Gold for Oil strategy.
The Vice President stated that the first oil items covered by the programme will be delivered in January 2023 in a Facebook post on Thursday.
Ghana would receive cheaper fuel as part of the barter pact that trades gold for oil.
After a recent decrease at the pump, it is anticipated that the arrival of fuel from the United Arab Emirates (UAE) will further lower fuel prices.
“I am happy to announce that the Government of Ghana has concluded the arrangements for the operationalization of the Gold for Oil policy.
“Consequently, the first oil products under the policy will be delivered next month (January 2023). My thanks to the Minister for Energy, Minister for Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, PMMC and BOST for their leadership in the operationalization of the Government’s Gold for Oil Policy.”
The government’s action is intended to address the declining foreign exchange reserves and the demand for dollars from oil importers, which are weakening the local cedi and driving up living expenses.
At the end of September 2022, Ghana’s gross international reserves were estimated to be around $6.6 billion, or less than three months’ worth of imports. According to the government, that is a decrease from the $9.7 billion it was at the end of the previous year.
The suggested policy is unusual. Although nations occasionally exchange oil for other products or commodities, in most cases the recipient is an oil-producing country rather than the other way around.
Ghana produces crude oil, but since its lone refinery was destroyed by an explosion, it has been dependent on imports for processed oil products.
