The CEO of the National Petroleum Authority (NPA) says it has in consultation with the Association of Oil Marketing Companies (AOMCs) come up with criteria for the distribution of the next consignment of petroleum products under the Gold for Oil (G4O) programme.

Speaking in an interview with Winston Tackie on Metro TV on the Gold for Oil Policy, Duncan Amoah, the Executive Secretary for the Chamber of Petroleum Consumers (COPEC)  described the implementation of the gold for oil policy as problematic and further indicated that the bank of Ghana and the economic management team have failed for not planning for the petroleum importation at the start of the year.

He is further charging government to spell out the nitty-gritty of the gold-for-oil policy to Ghanaians.

He said the policy seems dead on arrival because the oil delivered seems not to have any impact on pump prices as they keep increasing.

Last year, the Vice President, Dr. Mahamudu Bawumia announced a new government policy dubbed Gold for Oil (G4O).

The policy, as explained by the government, is to allow the government to pay for imported oil products with gold, in a direct barter with gold purchased by the Central Bank.

The move, announced by the Vice President in the midst of the depreciation of the cedi against the US dollar and the rising cost of fuel prices, was explained as an intervention to help stabilize prices of fuel products, as well as reduce pressure on Ghana’s foreign exchange, as the direct gold barter would be the mode of paying for imported oil instead of depleting the foreign exchange reserve.

The Gold for Oil programme has since been implemented with the first oil consignment arriving last month. In a recent presentation to stakeholders, the National Petroleum Authority (NPA) presented a transaction structure that reveals that oil products will be imported with the dollar, further clarifying that gold will not be exchanged for oil.

By: Winston Tackie | Metrotvonline.com | Ghana | Ghana