The Managing Director of the Bulk Oil Storage and Transportation (BOST) Company, Edwin Alfred Provencal, has highlighted the positive impact of the government’s Gold for Oil programme, stating that it has contributed to the reduction in petroleum prices at the pumps and has also played a role in curbing inflation.

Mr. Provencal emphasized that prices in Ghana, which were hovering around ¢23 in 2022, have significantly decreased, with the Gold for Oil programme playing a major role in this positive development. He expressed confidence that the programme’s continuation is essential, despite suggestions from some industry observers that it should be discontinued.

Appearing on PM Express, Business Edition with George Wiafe on July 20, 2023, Mr. Provencal asserted that the Gold for Oil programme is likely to further drive down prices at the pumps in the coming months.

The Gold for Oil Programme was officially launched on January 15, 2023, with the arrival of the first consignment of about 40,000 metric tonnes of diesel valued at $40 million. The primary objective of the programme is to utilize additional foreign exchange resources from the Bank of Ghana’s Domestic Gold Purchase (DGP) programme to provide foreign currency for importing petroleum products, which currently amounts to approximately US$350 million per month. The programme enables the exchange of gold for petroleum products between the Bank of Ghana and International Oil Trading Companies.

While some industry figures have raised concerns about the viability of the programme, Mr. Provencal remains optimistic about its benefits. He revealed that BOST is seeking an increase in its margin, which would help improve the company’s infrastructure. Currently, the government has placed 9 pesewas on every litre of petroleum products sold at the pumps to support BOST’s operations.

Looking back at BOST’s performance, the company experienced a loss of ¢456 million in 2021 but managed to post a profit after tax of ¢160 million in 2022. Mr. Provencal attributes this turnaround and financial growth to the efforts of the company’s staff, management, and board.

As the debate continues, the Gold for Oil programme remains a significant topic in Ghana’s energy sector, with stakeholders weighing its benefits against concerns about its long-term effectiveness.

Source : Joyonline

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Charles Narh Nortey
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