BOST MD predicts GHS 1 drop in fuel price
Bulk Oil Storage and Transportation Company (BOST) is expecting a GH₵1 reduction in the price of gasoline soon, according to the company’s Managing Director, Edwin Provencal.
This is due to the implementation of the government’s gold for oil policy, which will bring four consignments of petroleum products to the country in February.
Provencal stated that BOST is working with the National Petroleum Authority (NPA) to increase the number of consignments under this policy, which will bring credibility to the market in the long term.
The gold for oil policy was announced by the Vice-President of Ghana, Mahamudu Bawumia, in November 2022, as a way to address the country’s economic challenges, such as the weakening of the local currency and the depletion of foreign currency reserves.
By using gold to purchase oil products, the government hopes to reduce the pressure on the local currency and prevent the exchange rate from affecting fuel and utility prices.
Provencal also mentioned that the government’s gold for oil policy will help BOST to solve some challenges when it comes to building a strategic reserve of stocks of petroleum products for the country.
He stated that BOST has been mandated to build a strategic reserve to meet a minimum of six weeks of national consumption, but has faced challenges in doing so due to a lack of resources.
The gold for oil policy is a significant step towards addressing some of the economic challenges facing Ghana and improving the country’s market credibility.
The expected reduction in gasoline prices is likely to have a positive impact on the cost of living for consumers.
