Former Energy Minister defends the Gold for Oil Program as NPP shares its plans for the energy sector
Dr. Matthew Opoku Prempeh, former Minister of Energy and Vice Presidential Candidate for the New Patriotic Party (NPP), has claimed that Ghana’s economy would have faced imminent collapse without the Gold for Oil program introduced in 2022.
He highlighted that this initiative was essential in safeguarding the Bank of Ghana’s foreign exchange reserves and alleviating the foreign currency shortages impacting the downstream petroleum sector.
During a town hall meeting hosted by the Chamber of Bulk Oil Distributors (CBOD), Dr. Prempeh noted that the forex demands from Bulk Distribution Companies (BDCs) were placing significant strain on the Bank’s reserves, often forcing BDCs to rely on the black market, which resulted in increased fuel prices.
The Gold for Oil program was established to stabilize fuel prices and reduce pressure on the Bank of Ghana’s forex reserves.
At the meeting, the NPP’s manifesto outlined plans to expand this initiative to ensure ongoing fuel price stability, lessen forex pressure, and enhance liquidity in the downstream petroleum market. It also proposed strengthening the National Petroleum Authority (NPA) by boosting its regulatory capacity and promoting an export-oriented petroleum hub.
However, Nana Amoasi, CEO of the Institute for Energy Security (IES), challenged Dr. Prempeh’s claims, arguing that the program has not fully achieved its goals. The CBOD CEO remarked that the town hall meeting was a valuable platform for discussing the NPP’s policies on the downstream petroleum sector.
The Chamber also intends to engage with the National Democratic Congress (NDC) next week to review their energy sector manifesto policies.
