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Gold for Oil policy to save Ghana $4.8bn annually- Dr Bawumia

Dr Bawumia
Vice President Mahamudu Bawumia

By: Mercy Darko

Vice President Mahamudu Bawumia says the decision by government to exchange gold for oil has yielded positive results as there has been stability in fuel and the local currency.

He said over the past three months the erratic increase in fuel prices has been minimized, stressing that the country will from next week see a further reduction in the prices of fuel at the pumps.

He added that about $4.8 billion will be saved annually following the successful implementation of the policy.

Dr. Bawumia made these remarks when he inaugurated the newly built edifice of the Bulk Oil Storage and Transportation, BOST in Accra.

He commended BOST for transforming the company and recording impressive profits for the first time in 11 years.

Vice President Bawumia said the Gold for Oil policy was needed in order to reduce the pressure on the cedi by helping the Bank of Ghana save foreign exchange and also help address the erratic increase in fuel prices.

He indicated that high cost of fuel which resulted in the incessant increase in transportation fares was a source of worry for government hence the bold decision to trade gold for oil.

He applauded stakeholders for supporting government’s initiative.

Deputy Minister of Energy, Herbert Krampah intimated that BOST has over the years played a key role in the development of the country.

He said government is committed to ensuring that the country has enough energy supply in the system. He praised BOST for posting significant profits in 2021.

The Board Chairman of BOST, Ekow Hackman in a remark while outlining some reforms put in place to enhance operations, noted that the company will this year automate its depots.

The ultra-modern edifice has seven floors, a conference room, cafeteria, underground fuel and water tanks and a 100-capacity underground parking lot.

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