The Director General of the National Lotteries Authorities, Mr. Sammy Awuku has indicated that the Gold for Oil deal that government is currently venturing into is best for the country as it will reduce the pressure on the Cedi and cost of fuel respectively.
The New Patriotic Party big gun, made the revelation during a one-day visit to the Upper Manya Krobo District (UMKD) to meet leadership and members of the party.
Mr. Awuku said Ghana spends about 400 – 600 million Dollars to import Oil and its related products which is a major cause of the depreciation of the Cedi as government changes a lot of Cedi into the foreign currency before it is able to import the petroleum products.
The former National organizer of the party hinted that the deal was also going to reduce the cost of fuel prices because Gold is a natural resource which belongs to all Ghanaians, adding that the deal will go a long way to bring the economy back on its feet.
Mr. Awuku took time to advise party delegates to remain strong and resolute to ensure the NPP retains power in 2024.
Meanwhile, the first consignment of the Gold for Oil Policy by the government to stem the increasing depreciation of the cedi against the major currencies has arrived at the Tema Port and discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST), Graphic Online has gathered.
The 41,000 metric tonnes of the petroleum products delivered by SCF YENISEI would be sold by BOST to bulk distributing companies (BDCs) around Ghana, a source has told Graphic Online.
Valued at $40 million, it was brokered by the Economic Management Team led by Vice President Dr Mahamudu Bawumia.
In November 2022, the government announced plans to buy oil products with gold rather than US dollars.
Vice President Dr Mahamudu Bawumia, said that the move was meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which was weakening the local cedi and increasing living costs.
“It will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Dr Bawumia said.
He added that using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products.
According to a Graphic Online source associated with the process, the first consignment cost $40 million worth of gold.
The source said BOST would sell the product to the BDCs, proceeds paid to an escrow account at the Bank of Ghana for the procurement of gold for the process.
Other members of the team that worked for the operationalization of the move are the ministers for Energy, Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, the Precious Mineral Marketing Company (PMMC) and BOST.
