Gold-for-Oil Was Not Meant to Stabilize the Cedi, But Ensure Fuel Supply – Dr Opoku-Prempeh
Dr. Matthew Opoku-Prempeh, the vice-presidential candidate for Ghana’s ruling New Patriotic Party (NPP), addressed concerns about the nation’s “Gold-for-Oil” program during an energy policy town hall hosted by the Chamber of Bulk Oil Distributors (CBOD).
He clarified that the initiative was not designed with the explicit aim of stabilizing the cedi, contrary to some public perceptions.
Dr Opoku-Prempeh noted that the primary objectives of the program were to ensure the security of fuel supply and mitigate the volatility of fuel prices, which had surged due to the scarcity of US dollars.
He emphasized that petroleum imports represented a significant demand on the nation’s foreign reserves, creating pressure on the local currency.
“The central bank had warned that by the end of 2022, if the country continued its high reliance on the dollar for fuel imports, the situation could become unsustainable,” he stated.
Addressing the broader context, Dr Opoku-Prempeh highlighted the difficulties Ghana has faced in managing foreign exchange requirements for fuel imports, noting that CBOD members have continued to grapple with securing adequate dollar liquidity from commercial banks.
While the gold-for-oil initiative has eased some pressure on foreign reserves, challenges remain in sustaining consistent access to foreign currency.
On a broader policy level, the NPP vice-presidential hopeful outlined the importance of continuing to stabilize fuel prices while ensuring security of supply.
He cited the need for future policy adjustments to tackle the structural challenges in Ghana’s fuel supply chain, including enhancing the role of the private sector in import and storage capacity expansion.
