Vice President Dr Mahamudu Bawumia has stated that the country will save $4.8 billion annually from the ‘Gold for Oil’ policy.
According to him, this is the most important aspect of the policy which is aimed stabilising prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange.
Speaking at the commissioning of the new Head Office of the Bulk Oil Storage and Transportation Company Limited (BOST), Dr. Mahamudu Bawumia said the policy is on course to achieve its overall objective.
“The most important aspect of the Gold for oil policy is the savings in foreign exchange that the Bank of Ghana will make as a result of the lower demand for forex to import oil. That savings is huge.
“This policy will reduce our need for forex by about USD4.8 billion annually and result in significant savings on the prices at the pump. The savings in foreign exchange when we do this will be an annual savings of $4.8 billion every year and that means the oil importing companies will not be going to the Bank of Ghana looking for $4.8 billion to buy oil”, he said.
He also noted that currently, 50 to 60 per cent of the country’s oil import was from the “Gold for Ol programme and expected to hit 100 per cent by the end of 2023, adding that “Ghanaians should look forward to more of these innovations as we bring the economy back to life.”
The Gold for oil policy which was announced by the government to help reduce the pressure on the cedi and bring in cheaper fuel has so far seen about 100,000 metric tons of fuel been brought into country under the policy.